STOCKS NEWS EUROPE-Valeo drops after Moody's cuts debt rating

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08:55GMT 08Jan2009-Valeo drops after Moody's cuts debt rating

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Shares in French car parts maker Valeo (VLOF.PA) drop 2.5 percent after rating agency Moody's downgrades the company's long-term debt rating to "Ba1" from "Baa3" and its short-term rating to "Not Prime" from "Prime-3".

Moody's says the outlook is negative and that the move "reflects the sharp acceleration of deteriorating market conditions in most automotive markets."

One trader says: "This is not good news, but with no immediate financial impact because Valeo has no refinancing needed before 2011."

Reuters Messaging rm://blaise.robinson.reuters.com@reuters.net

08:49GMT 08Jan2009-Austria's Intercell soars on Crucell takeover news

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Shares in Austrian vaccine maker Intercell (ICEL.VI) rise as much as 9 percent to a two-month high of 24.60 euros after Dutch peer Crucell (CRCL.AS) says late on Wednesday it is in talks with U.S. drug maker Wyeth WYE.N about a takeover. Crucell and Intercell are the main remaining independent vaccine makers in Europe, so the move on Crucell reignites takeover hopes for Intercell, analysts say.

"Industry news always puts the sector into focus, particularly possible takeover candidates," one analyst says. For more on Crucell/Wyeth, double click on [ID:nN07501131]

Reuters Messaging rm://eva.komarek.reuters.com@reuters.net

08:47GMT 08Jan2008-Sainsbury hands back gains, no profit upgrade