By Anna Prior
International companies trading in New York closed lower Monday,
as exit polls for Italy's general election stoked fears that the
country seemed set to reject austerity measures.
The Bank of New York index of ADRs slumped 2.2% to 132.90.
In Italy, some exit polls showed former Italian Premier Silvio
Berlusconi's political party gaining ground in the country's
general election. Earlier readings had indicated Pier Luigi
Bersani's center-left coalition government--seen generally as the
most market-friendly group--had a commanding lead. The results
could influence whether Italy continues austerity measures meant to
shore up the country's finances.
The European index fell 2.5% to 124.58.
Shares of U.K.-based publisher Pearson PLC (PSO, PSON.LN)
slipped 5.6% to $17.63 as the company said it will cut jobs as part
of a new restructuring plan. The firm said it expected tough
trading conditions and structural industry changes to continue in
2013.
However, Pharmaceutical investor Royalty Pharma LLC said Monday
it made a $6.55 billion takeover offer for Elan Corp. (ELN,
DRX.DB), two days before the Irish drug maker outlined its
investment plans after the sale of its stake in multiple sclerosis
drug Tysabri. Royalty said it approached Elan on Feb. 18 and met
the company on Wednesday with an offer of $11 a share but hasn't
received a formal response to its proposal and has been
unsuccessful in its efforts to engage with Elan since making the
offer.
Elan said Monday the proposal from Royalty had been indicative
only. Elan also described, in a statement, the approach from
Royalty as "high opportunistic" and pointed to its continuing
attempts to restructure itself following the divestment of Tysabri
as evidence that its own strategy was a better path to value
creation. Elan shares rose 5.1% to $11.14.
The Asian index dropped 1.6% to 134.26.
India's federal investigation agency has registered an initial
criminal case against SingTel (SGAPY), Bharti Airtel Ltd.
(532454.BY) and Tata Communications Ltd. (TCL, 500483.BY), alleging
that they deprived the government of at least 480 million rupees
($8.89 million) in revenue by violating the country's telecom
rules. SingTel didn't offer an immediate comment and Bharti
declined to comment. Tata Communications in a statement said "it
has not violated any of the terms" of India's telecom rules. Tata
Communications shares fell 2.5% to $8.05.
Adding to declines were Chinese solar stocks. JA Solar Holdings
Co. (JASO) fell 8.9% to $4.74, while Yingli Green Energy Co. (YGE)
dropped 6.6% to $2.85 and ReneSola Ltd. (SOL) fell 6.1% to
$2.33.
The Latin American index shed 1.5% to 322.18 and the emerging
markets index slid 1.5% to 283.30.
Shares of Brazilian state oil giant Petroleo Brasileiro SA (PBR,
PETR3.BR, PETR4.BR), or Petrobras, fell 2.3% to $14.91. Mines and
Energy Minister Edison Lobao said last week that the government
doesn't plan on increasing gasoline prices again in coming months
after allowing Petrobras a smaller-than-expected 6.6% increase to
gasoline prices in January.
Write to Anna Prior at anna.prior@dowjones.com