European Stocks Rebound From Rout; Actelion, Roche Shares Climb

Nov. 17 (Bloomberg) -- European stocks rebounded from the biggest drop in four months as the European Union started work on a possible aid package for Ireland’s banks. Asian shares fell, while U.S. index futures fluctuated.

Actelion Ltd. jumped 8.5 percent, leading health-care stocks higher, after Amgen Inc. was said to be considering a takeover offer for the Swiss drugmaker. Roche Holding AG advanced 1.3 percent as the world’s biggest maker of cancer drugs announced a cost-reduction program. Thales SA, Europe’s biggest maker of defense electronics, sank 3.9 percent as UBS AG downgraded the shares.

The benchmark Stoxx Europe 600 Index gained 0.1 percent to 266.3 at 8:44 a.m. in London following yesterday’s 2.3 percent plunge. Irish Finance Minister Brian Lenihan said talks with the European Commission, the European Central Bank and the International Monetary Fund on potential aid for the country’s banks will start tomorrow.

Finance chiefs from the 16-country euro region yesterday lauded Ireland’s budget cuts, echoing the rhetorical support offered in the early stages of Greece’s debt trauma before a rescue became necessary.

Ireland “did not commit to enter a facility, but there are serious market disturbances,” Lenihan said yesterday. European aid is “not inevitable.”

“Traders await any developments about Ireland,” said Jonathan Sudaria of London Capital Group.

Asian, U.S. Shares

The MSCI Asia Pacific Index fell 0.9 percent today after Chinese Premier Wen Jiabao said the cabinet is drafting plans to stem inflation. Futures on the Standard & Poor’s 500 Index rose less than 0.1 percent, following yesterday’s biggest slump for the benchmark U.S. gauge since August.

A U.S. Labor Department report today may show the cost of living rose for a fourth month in October. The consumer-price index increased 0.3 percent after a 0.1 percent gain the prior month, the median forecast of economists in a Bloomberg survey showed. Other figures may show housing starts fell to the lowest level since July.

A measure of health-care stocks climbed 0.8 percent for the biggest gain among 19 industry groups in the Stoxx 600.

Actelion surged 8.5 percent to 54.3 Swiss francs after two people with knowledge of the matter said Amgen, the world’s largest biotechnology company, is considering a takeover offer and may approach the drugmaker as early as this week.

Roche Rises

Roche gained 1.3 percent to 144.3 francs after the drugmaker said it will cut 4,800 jobs as part of a cost- reduction program aimed at saving 2.4 billion francs ($2.4 billion) annually.

Roche also reiterated its forecast for this year, saying earnings per share, which excludes exceptional items and amortization and impairment of intangible assets, will probably increase at a double-digit pace at constant exchange rates.

GlaxoSmithKline Plc climbed 2.1 percent to 1,238.5 pence after the U.K. drugmaker and Human Genome Sciences Inc. won a U.S. panel’s backing to sell the first new lupus drug, Benlysta, in more than 50 years.

Thales slid 3.9 percent to 27.31 euros as UBS downgraded the shares to “sell” from “hold.”

ICAP Plc gained 2.1 percent to 475.7 pence as the world’s largest broker of transactions between banks said first-half profit rose, led by its electronic trading business.

Collected from- http://www.businessweek.com/news/2010-11-17/european-stocks-rebound-from-rout-actelion-roche-shares-climb.html