February 22, 2017 / 5:46 PM / 2 years ago

Flat European shares helped by positive earnings updates

* Europe’s STOXX 600 ends flat

* Unilever biggest FTSE gainer after review promise

* Italy’s FTSE MIB weighed by Mediolanum

* Lloyds, Telefonica Dt and Scor up after results

* ThyssenKrupp gains after Brazil mine sale

* Ericsson gains on Cisco takeover speculation (Adds details, closing prices)

By Helen Reid

LONDON, Feb 22 (Reuters) - European shares were steady at 14-month highs on Wednesday, supported by well-received earnings updates from companies such as Lloyds, Telefonica Deutschland and Scor.

The pan-European STOXX 600 index ended flat after setting an intra-day high of 375.42 points, its highest level since early December 2015. Germany’s DAX was up 0.3 percent after hitting levels not seen since April 2015.

Lloyds, the second largest British listed bank to post earnings this week, was a top gainer, up 3.3 percent after impressing investors with profits rising to a ten-year high.

Telefonica Deutschland rose 2.2 percent after it reported better-than-expected core profit for the fourth quarter and raised its target for synergies from its acquisition of E-Plus, while French insurance company Scor rose 3.2 percent after it raised its dividend and said it planned share buybacks due to a 5.4-percent increase in premiums.

Unilever rose 5.7 percent, making its shares the biggest gainers on the FTSE 100 index, after saying it was reviewing its options to drive shareholder value, days after rejecting a $143 billion-bid from Kraft-Heinz.

A source close to the group said the review should be completed by April and could lead to asset sales and cost cuts.

ThyssenKrupp was also a top gainer, up 4.6 percent after the German industrials and steel company said it had sold its Brazilian steel mill to Ternium, ending five years of unsuccessful efforts by the German company to exit Latin America’s largest economy.

Fresenius Medical added to the strong German stock performance, up 1.6 percent after the healthcare group said 2016 sales rose 5 percent, adding that it has targeted double-digit annual gains by 2020.

The disposal price, 1.26 billion euros ($1.33 billion), was above UBS analysts’ estimates. “For us, it is an important step forward to clean up ThyssenKrupp’s comprehensive business portfolio and reduces earnings volatility going forward,” they wrote in a note.

Ericsson was up 3.3 percent, extending Tuesday’s gains on speculation that U.S. telecoms giant Cisco could buy the Swedish tech company, and on a positive note from Haitong Research, which started covering the stock on a “buy” rating, saying catalysts over the next two years could cause Ericsson’s share price to double.

Italy’s blue-chip index underperformed its European peers, dipping 0.8 percent as asset manager Mediolanum fell 3.2 percent after a target cut from Kepler Cheuvreux on concern over a possible fall in 2018 performance fees.

The shares, which plunged on Tuesday after the CEO flagged the risk, came off initial lows after the company said it would charge higher recurring fees to help offset the expected drop in performance income.

Sector peers Azimut and Banco BPM were among top European fallers, down 3 and 4.2 percent respectively.

Weir Group was the biggest STOXX faller, dropping 8.9 percent. The maker of pipes and valves for energy and mining industries reported a 22-percent fall in full-year pretax profit, hurt by a weak North American oil and gas market. (Additional reporting by Danilo Masoni in MILAN; Editing by Louise Ireland)

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