European Stocks to Watch: BMW
Shares in BMW rose 1.7% on speculation it could buy Swedish automaker Volvo from Ford Motor, according to reports on Swedish magazine Gotenborgs Posten’s Web site citing undisclosed sources.
Shares in Ford rose 0.6%, supporting an opinion held by brokerage Merck Finck that Volvo is an under-developed brand and could hold further upside potential for any potential bidder, Dow Jones reported.
BMW is likely to be cautious however, following its previous acquisition of U.K. automaker Rover, which failed to materially help the German automaker.
Dairy Crest Group (Down 3.4%) The dairy product maker announced a recall of its butter substitute Clover, which was found to develop a bad-tasting mold usually found in blue cheese.
GlaxoSmithKline (Down 2.1%) GSK’s diabetes drug Avandia has been shunned by U.S. doctors, following a study linking the drug to heart attacks, according to early prescription data, Reuters reported.
Richemont (Up 1.6%) Kepler Equities raised its price target for the Swiss luxury goods group to $73.55 from $61.31, citing continued demand for the branded jewelry.