ADR Report: Shares Close Lower As Latin America Weighs

30th Jun 2010 22:29

By Victoria Finkle Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed lower on disappointing U.S. employment figures and Moody's review of Spain's credit ratings, despite an uptick in Chicago-area manufacturing activity and an encouraging European Central Bank auction. The Bank of New York index of ADRs closed down 0.6% at 113.01. Australia's competition courts handed down a split decision, granting Fortescue Metals Group Ltd. (FMG.AU) access to two rail networks in the Pilbara iron-ore mining region operated by its larger rivals, Australia's BHP Billiton Ltd. (BHP, BHP.AU) and the U.K.'s Rio Tinto PLC (RTP, RIO.LN), but denying access to two others. Shares of BHP Billiton fell 2.2% to $61.99 and those of Rio Tinto fell 4% to $43.60. The European Commission fined 17 steel makers a total of EUR518.5 million ($22.6 million) for fixing prices and sharing out markets for prestressed steel over two decades. Shares of Luxembourg-steelmaker ArcelorMittal SA (MT, MT.AE) dropped 3% to $26.76. The European index slipped 0.7% to 101.95. BP PLC (BP, BP.LN) gained as increasing speculation of potential deal activity had investors increasingly viewing the oil giant's assets, and possibly the company as a whole, as an acquisition target. The company also said it's redeploying workers to three platforms in the Gulf of Mexico that had shut down ahead of Hurricane Alex and that production at the facilities is restarting. Shares closed up 4.4% at $28.88. Prudential PLC (PUK, PRU.LN) said the majority of the U.K.-listed insurer's shareholders aren't asking for management changes after a period of turbulence around the company's failed attempt to buy American International Group Inc.'s (AIG) Asian business. But people familiar with the thinking of two top-20 shareholders said that they remain unhappy with the company's handling of their concerns, suggesting that the insurer may yet face a further campaign to remove the management. Prudential shares fell 3% to $14.94. A California appeals court upheld a $21 million refund that Verizon Wireless will have to pay to some of its customers as a result of a settlement of a class-action lawsuit over its early termination fees, according to the lawyer representing the plaintiffs. Verizon Wireless is jointly owned by Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD, VOD.LN). Shares of U.K.'s Vodafone dropped 3.4% to $20.67. The Latin American index fell 1.1% to 332.97. The Brazilian Finance Ministry's antitrust division, known as SEAE, recommended approval of the merger of Perdigao and Sadia, which created the meatpacker BRF-Brasil Foods SA (BRFS3.BR, BRFS), but with restrictions that could mean the sale of key assets. Shares of BRF-Brasil dropped 6.2% to $13.26. A deal was close at hand when talks to end an 11-month strike at Brazilian miner Vale SA's (VALE, VALE5.BR) nickel operations in Ontario were terminated, Vale Ontario operations general manager John Pollesel said, adding there are currently no further negotiations scheduled between the Brazilian miner and union officials. Shares closed down 2.3% to $24.35. The Asian index slipped 0.3% to 113.69. The South Korean government Wednesday missed its own deadline for announcing its final plans to sell a majority stake in Woori Finance Holdings Co. (WF, 05300.SE), pinning the delay on a scheduling conflict among government officials involved in the stake sale. Shares fell 1.6% to $35.02. The emerging markets index slid 0.6% to 279.79. Indonesian telecommunications firm Indosat (IIT, ISAT.JK) said the tender deadline for cash guaranteed notes issued on its behalf by its two financial units has been pushed back to July 21, from June 28. The original tender was due on May 24, but the firm extended the date twice--the first extension was to June 7 and it was further extended to June 28. Shares fell 2.4% to $27.14. -By Victoria Finkle, Dow Jones Newswires; 212-416-3418; [email protected] (END) Dow Jones Newswires June 30, 2010 17:29 ET (21:29 GMT)