Brussels shares close up, index over 4,000 points; Belgacom rises UPDATE

BRUSSELS (AFX) – Shares closed higher, boosted by Wall Street gains, with telecoms group Belgacom leading the blue-chips, traders said.

At the close, the Bel 20 was up 50.11 points or 1.26 pct at 4,021.99 — past the benchmark of 4,000 points for the first time.

Belgacom was up 0.98 eur or 3.41 pct at 29.76 eur.

A KBC trader said Belgacom’s performance was boosted by its ongoing share buyback program. The trader also said sentiment on the stock has been boosted by a delayed cut in telecom termination rates.

Healthcare group Omega Pharma was up 0.88 eur or 2.01 pct at 44.67 eur.

For the heavyweight financials, Fortis rose 0.57 eur or 1.84 pct to 31.62 eur, KBC Group was up 1.30 eur or 1.57 pct at 84.30 eur and Dexia was up 0.25 eur or 1.26 pct at 20.08 eur.

Delta Lloyd Securities analyst Carlo Ponfoort raised the broker’s target price on Dexia to 22.00 eur from 20.75.

He said this was due to ‘higher EPS estimates and the new targets we expect at Dexia’s Investor Day next week.’

Supermarket group Delhaize was up 1.10 eur or 1.80 pct at 62.20 eur amid renewed media reports that the company is in merger talks with Dutch peer Royal Ahold, dealers said.

A spokesman for Delhaize said: ‘We do not comment on rumours.’

Delta Lloyd Securities analyst Pascale Nachtergaele pointed to possible difficulties with competition authorities in case of a proposed merger deal, and that large investments would be needed ‘as Ahold needs to refurbish its store network’.

However, Nachtergaele concluded that a merger ‘could (for Ahold) be a way to escape from hedge funds. For Delhaize, it could be an opportunity to strengthen itself.’

Delta Lloyd Securities holds Ahold at ‘accumulate’ with a 8.20 eur price target.

‘We do not believe that ‘big’ is necessarily beautiful,’ said KBC analyst Pascale Weber.

‘A merger of Ahold’s and Delhaize’s food retail activities in the US will lower the average performance… We feel that Ahold will benefit from a potential deal but we fear that it will represent a drain on Delhaize’s managerial and financial resources’.

Utility Suez rose 0.45 eur or 1.30 pct to 35.05 eur. French finance minister Thierry Breton predicted the parliamentary bill to authorise the merger of Gaz de France and Suez will pass with a crushing majority.

He made the comment on France Inter radio, where he also said the risks are ‘very limited’ that there would be a public offer to acquire Gaz de France after its privatisation — referring to the entity generated by the planned merger with Suez, noting that the state would still have a blocking minority of shares.

Brewer InBev climbed 0.08 eur or 0.18 pct to 43.33 eur.

For the fallers, imaging technology and software group Agfa-Gevaert fell 0.05 eur or 0.27 pct to 18.42 eur.

Colruyt dipped 0.30 eur or 0.22 pct to 136.00 eur. The discount supermarket group said it expects net profit of 247 mln eur in 2006/7.

Outside the Bel 20, Van de Velde rose after it published strong first-half profit and sales.

The stock was up 0.69 eur or 2.00 pct at 35.19 eur.

Analyst Natalie Sierens at KBC told AFX News results were ‘slightly better than expected,’ and said she was ‘absolutely’ pleased with them.

The broker will review its earnings model, and currently has a ‘buy’ rating and 37.00 eur target price on the stock.

Van de Velde’s first half EBIT was 21.5 mln eur, up from 19.2 mln last year, and above KBC’s estimate of 21.2 mln.

The group also said that it expects sales growth in the second six months to be around 5 pct, which ‘guarantees annual growth in sales in excess of 8 pct’.

Source- http://www.forbes.com

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Mobistar to launch “permission marketing??? via Bluetooth

Major Belgian service provider Mobistar, in cooperation with Sony Ericsson, is launching an innovative campaign in eight Belgian cities using interactive Bluetooth technology. All users with Bluetooth enabled handsets will be able to receive free ringtones if they are within 30 metres of an Abribus (a bus shelter showcase). Consumers will receive a message asking whether he would like to receive a ringtone. If he accepts, the consumer receives a free Christina Aguilera True Tone from Mobistar. This campaign will introduce mobile users to what is called “permission marketing”. The telecom operator is the first to use the new Bluetooth technology. “Traditional mass communication must give way to new communication methods. This campaign illustrates the concept of interactive communication and is based on the principles of permission marketing” states Chris Van Roey, Chief Communication Officer of Mobistar.

“Music plays an important role in the lives of young people. To create a unique music experience via mobile and to further reinforce our position with the music and youth segment, Mobistar cooperated with JCDecaux Innovate, Sony Ericsson and Sony BMG to develop this interactive campaign.” comments Van Roey.

Source- http://www.w2forum.com

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Mobistar to launch “permission marketing” via Bluetooth

Major Belgian service provider Mobistar, in cooperation with Sony Ericsson, is launching an innovative campaign in eight Belgian cities using interactive Bluetooth technology. All users with Bluetooth enabled handsets will be able to receive free ringtones if they are within 30 metres of an Abribus (a bus shelter showcase). Consumers will receive a message asking whether he would like to receive a ringtone. If he accepts, the consumer receives a free Christina Aguilera True Tone from Mobistar. This campaign will introduce mobile users to what is called “permission marketing”. The telecom operator is the first to use the new Bluetooth technology. “Traditional mass communication must give way to new communication methods. This campaign illustrates the concept of interactive communication and is based on the principles of permission marketing” states Chris Van Roey, Chief Communication Officer of Mobistar.

“Music plays an important role in the lives of young people. To create a unique music experience via mobile and to further reinforce our position with the music and youth segment, Mobistar cooperated with JCDecaux Innovate, Sony Ericsson and Sony BMG to develop this interactive campaign.” comments Van Roey.

Source: Pr.com

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Tele2, Versatel to merge Dutch, Belgian operations

Tele2 and Versatel have agreed to merge their Dutch and Belgian operations. The merger will take the form of Versatel acquiring Tele2′s Dutch and Belgian operations. Versatel will issue new shares to finance the transaction, with all shareholders able to participate in the share issue on a pro rata basis. Versatel said as well that it may need to raise capital to complete its business plan, although has yet to decide whether this would take the form of a debt or equity issue. Versatel and Tele2 have been working to complete their merger for nearly a year. While Tele2 holds a majority of shares in Versatel, opposition from minority shareholders has held up the legal merger of the companies.

Source- http://www.telecompaper.com

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Belgacom pays Vodafone US$2.6 billion for rest of mobile arm Proximus

BRUSSELS (AP) – Belgium’s biggest telephone company, Belgacom SA, said Friday it has agreed to buy Vodafone Group PLC’s 25 per cent stake in Proximus for $2.6 billion US, giving it full control of the mobile operator. Proximus is Belgium’s largest mobile operator, with 47 per cent market share and 4.25 million customers. Belgacom said it expected the deal would add six to seven per cent to next year’s earnings – citing “significant synergies” and tax savings as it struggles with falling revenue from its main market, traditional telephone calls. It said it would finance the two-billion-euro buyout with a bridge loan in the short term and may make a bond offering later. It will also use the 67 million euros ($86 million) it will receive by selling its 5.8 per cent stake in French telecom firm Neuf Cegetel. France’s second largest mobile operator, SFR, has agreed to buy Neuf Cegetel. Belgacom said these deals were part of its plan to focus on its core market, saying it would continue to roll out new services such as digital TV and broadband internet in Belgium. Analyst Dirk Saelens who covers Belgacom stock for KBC Securities said both deals are positive news. The price paid for the Proximus stake “is not cheap, but it’s a good move and still earnings enhancing,” he said. Belgacom shares rose 2.5 per cent to 27.82 euros ($35.70) in trading in Brussels. The company faces a tough market, expecting revenue from its major source of revenue – fixed line telephone services – to decline by three per cent this year. New European Union rules on lower charges for international roaming to be introduced next year will also have a significant financial impact on Proximus, it said. Belgacom depends on fixed-line telephone calls for nearly half of its revenue but the market is shrinking. Revenue from fixed line services fell 1.4 per cent in the first six months of 2006, it said, which was partly offset from the growth in Internet, network integration services and selling access at wholesale rates to rivals. Belgacom reported a net profit of 219 million euros ($281 million) in the second quarter, down 23 per cent from 286 million euros in the same period last year. Total revenues rose 11 per cent to 1.525 billion euros ($1.96 billion) from 1.37 billion euros a year ago. Belgacom CEO Didier Bellens said the company would spend up to 200 million euros ($257 million) buying back shares and paying shareholders an interim dividend of 100 million euros ($128 million) before the end of the year. Bellens said the company was doing better than expected but preferred to reward shareholders rather than actively hunt for new acquisitions.

Source- http://money.canoe.ca

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