Brussels shares close lower; UCB falls UPDATE

(Updates with full report) BRUSSELS (Thomson Financial) - Shares closed lower, hit by Wall Street losses, with pharmaceutical group UCB heading the blue-chips down.

At the close, the Bel 20 was down 46.25 points or 1.19 percent at 3,873.16.

UCB was down 1.09 euros or 4.23 percent at 24.59 euros and Umicore was down 1.45 euros or 4.17 percent at 33.30 euros.

Agfa-Gevaert was down 0.17 euro or 3.00 percent at 5.33 euros. The imaging technology group was upgraded to 'hold' from 'sell', and its target price was raised to 8.00 euros from 5.00 euros at ABN Amro Securities.

The group sent out an internal communication to staff, following speculation about the future of its healthcare unit. A spokesman for the group said the internal memo sent out by chief executive Jo Cornu clarifies speculation about private equity firm Gores Group's possible interest in the unit.

Suez was down 1.20 euros or 2.65 percent at 44.12 euros and supermarket group Delhaize was down 0.91 euro or 1.75 percent at 51.19 euros.

Nationale a Portefeuille was down 0.89 euro or 1.70 percent at 51.33 euros.

The holding company was cut to 'hold' from 'accumulate' at KBC Securities and from 'hold' to 'accumulate' at Degroof following its first-quarter results.

For the heavyweight financials, KBC Group was down 1.09 euros or 1.28 percent at 84.11 euros, Fortis was down 0.13 euro or 0.76 percent at 17.06 euros and Dexia was down 0.06 euro or 0.34 percent at 17.42 euros.

Fortis will post first-quarter results on Tuesday before the market opens, which will show a slight fall in net profit due to market conditions and integration costs for ABN Amro, which is the centre of analysts' focus, along with the Tier 1 capital ratio.

Net profit is seen dropping to 953 million to 1.141 billion euros, from 1.167 billion last year, according to analysts polled by Thomson Financial News.

Separately, chairman Maurice Lippens said he would not oppose a friendly takeover offer for the company if it was beneficial to the bank's customers, staff and shareholders.

"If a company came tomorrow and proposed a friendly partnership and if it is good for Fortis and its customers, staff and shareholders, who am I to oppose it?" Lippens said in an interview with Belgian daily Le Soir.

For the gainers, zinc group Nyrstar was up 0.57 euro or 4.00 percent at 14.83 euros. Belgacom was up 0.75 euro or 2.49 percent at 30.63 euros. The telecoms group said it has cut rates for its Proximus 3G broadband network.

Separately, Mobistar chief executive Benoit Scheen said Belgacom must be privatised quickly to solve the lack of competition in the market, Belgian newspaper La Libre Belgique reported.

"There is clearly a lack of competition in the Belgian market. The remedy must include a rapid privatisation of Belgacom," Scheen said at a telecom operators' debate on Thursday.

InBev was up 0.74 euro or 1.48 percent at 50.63 euros. The brewer should reverse disappointing first-quarter earnings and falling profit margins by showing a better second half of the year, but questions still linger for investors over the blue chip's earnings trends and management strategy, analysts said. UBS downgraded its recommendation on InBev to 'hold' from 'buy' and cut its target price to 57.00 euros from 70.00 euros. UBS concluded that other brewers such as Carlsberg, SABMiller and Heineken offer better sales growth and cost savings potential.

Elia was down 0.03 euro or 0.11 percent at 28.50 euros. The grid operator and German peer Vattenfall said they have agreed to cooperate on security of supply and developing renewable energy sources.

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