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STOCKS NEWS EUROPE-CIR up on Sorgenia report, Goldman note

Mon Jun 15, 2009 5:26am EDT

Stocks

   

Shares in Italian conglomerate CIR SpA (CIRX.MI) rise 1.7 percent on a newspaper report that Austria's Verbund (VERB.VI) will soon increase its stake in CIR power unit Sorgenia and on a Goldman Sachs boost to its CIR price target.

Brokers say Corriere della Sera's report that Verbund will boost its stake to 45 percent was part of CIR-Verbund ties announced a year ago. The deal values Sorgenia at 3.9 billion euros.

"The Verbund increase is in line with the plan already known and CIR will get cash. Goldman Sachs has also made a report," a broker says. CIR's gain compares to a 1.9 percent fall in the DJ Stoxx utilities index .SX6P.

The newspaper says Verbund will increase its stake via conversion of 150 million euros of bonds by the end of June.

Goldman raises its target price to 1.35 euros from 0.86 euros and keeps its rating at "neutral".

Reuters Messaging rm://nigel.tutt.reuters.com@reuters.net


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