By Anna Prior
International companies trading in New York closed lower Friday
amid a disappointing read on U.S. consumer confidence.
The Bank of New York index of ADRs fell 0.2% to 137.33.
A report indicated the lowest level of consumer confidence since
December 2011 as the Thomson Reuters/University of Michigan
consumer-sentiment index of March fell well short of expectations,
and consumers' outlook for the economic environment over the year
ahead dropped steeply.
Meanwhile in Europe, The Wall Street Journal reported that
euro-zone finance ministers sought to lower the price tag on a
long-delayed bailout for tiny Cyprus, but core elements of the
rescue, including whether the International Monetary Fund will chip
in, were still uncertain.
The European index edged down 0.1% to 129.63.
Carnival PLC (CUK, CCL.LN) swung to a fiscal first-quarter
profit as the British cruise-line operator booked lower expenses
and benefited from the absence of an impairment charge that bogged
down the year-earlier quarter, pushing its latest results above
estimates. However, the company offered a weak view for the current
quarter, amid a recent series of public relations disasters. Shares
fell 2.7% to $36.13.
Jefferies upgraded ARM Holdings PLC (ARMH, ARM.LN) to buy from
hold, saying the U.K.-based microchip designer remains
well-positioned for the mid to long term, given rising royalty
rates and record licensing, among other things. Overall, Jefferies
said it expects earnings growth to continue largely unperturbed
through 2013-2016. Shares edged up 0.4% to $41.91.
The Asian index dropped 0.3% to 137.28.
Shares of South Korean steelmaker Posco (PKX, 005490.SE) fell
2.3% to $74.14 as giant Luxembourg-based steel company
ArcelorMittal (MT, MT.FR, MT.AE) said Friday that it completed the
first installment of a 15% stake sale in its ArcelorMittal Mines
Canada joint venture. ArcelorMittal agreed in January to sell the
total stake in AMMC to a consortium led by Posco and China Steel
Corp. for $1.1 billion. On Friday, ArcelorMittal said it had sold
an 11.05% stake in the joint venture to the consortium for $810
million. ArcelorMittal shares, meanwhile, finished down 1.3% at
$14.81.
Meanwhile, Ambow Education Holding Ltd. (AMBO) received a
proposal from major shareholder Baring LP to purchase all of the
company's American depositary shares and class A ordinary shares at
a purchase price of $1.46 per ADS and 73 cents per ordinary share,
according to a regulatory filing. Baring and its affiliates
currently have a roughly 10% stake in the operator of schools,
college and training centers throughout China, Wells Fargo said in
a note to clients, adding that the proposed price represents a
44.5% premium over Thursday's closing price. Shares rose 54% to
$1.55.
The Latin American index dropped 0.5% to 328.33, and the
emerging-markets index declined 0.9% to 283.68.
Brazilian home builder Gafisa SA (GFA, GFSA3.BR) fell 8.2% to
$3.72 amid a peer's downgrade. Investment bank BTG Pactual cut its
share recommendation for MRV Engenharia & Participacoes SA
(MRVNY, MRVE3.BR), which focuses on low-income housing, to neutral
from buy, saying the company's price increases since 2011 are
making its homes less affordable.
Write to Anna Prior at anna.prior@dowjones.com