German Stocks Decline for Third Day; BMW, Metro, Postbank Drop

By Stefanie Haxel

Sept. 11 (Bloomberg) -- German stocks fell to the lowest in almost two months as concern mounted that slowing economic growth and more credit-market losses will hurt earnings.

Bayerische Motoren Werke AG sank the most in three weeks and Metro AG dropped for the first time in four days, leading declines among automakers and consumer companies. Deutsche Postbank AG slid 5.9 percent on speculation that Deutsche Bank AG will buy less than 30 percent of the lender.

The benchmark DAX Index slipped 104.84, or 1.7 percent, to 6,105.45 as of 2:41 p.m. in Frankfurt, the lowest since July 15. DAX futures expiring in September decreased 1.4 percent to 6,116.5. The HDAX Index of the country's 110 biggest companies lost 1.6 percent.

The DAX has fallen 24 percent this year as credit losses and writedowns at financial firms worldwide topped $500 billion and slowing economic growth damped the outlook for earnings. Analysts cut their recommendations for Lehman Brothers Holdings Inc. today after the bank posted a wider-than-estimated third-quarter loss.

``Lehman is permanently occupying the markets,'' said Fidel Helmer, head of equity trading at Hauck & Aufhaeuser in Frankfurt. As long as it's not clear ``what will happen to Lehman, markets will remain alienated,'' he said in a Bloomberg Television interview.

A government report today showed that more Americans than forecast filed initial claims for unemployment insurance last week, while total benefit rolls rose to the highest level in almost five years, as companies reduced staff to maintain profits in a slowing economy.

Risk Provisions

BMW sank 88 cents, or 3 percent, to 28.13 euros, the steepest decline since Aug. 21. The carmaker is preparing to set aside risk provisions as the problems of its leasing business are rising, Handelsblatt reported on its Web site last night, citing Chief Financial Officer Michael Ganal.

MAN AG, Europe's third-largest truckmaker, retreated 2.84 euros, or 5 percent, to 2.84 euros.

Metro lost 87 cents, or 2.2 percent, to 38.97 euros. Adidas AG, the world's second-largest sporting goods maker, slipped 1.23 euros, or 3.2 percent, to 37.15.

Deutsche Postbank shares plunged 2.75 euros, or 5.9 percent, to 43.80, the steepest drop since Aug. 19. Parent Deutsche Post added 8 cents, or 0.5 percent, to 16.03 euros.

Deutsche Bank lost 2.30 euros, or 3.8 percent, to 58.70. Germany's largest bank may buy less than 30 percent of Postbank, rather than purchase the whole company, to thwart rival bidders and avoid making a mandatory takeover offer, a person with knowledge of the matter said Sept. 9.

`Bad Deal'

``This is a bad deal for Postbank and its investors,'' said Johannes Thormann, a Dusseldorf-based analyst at HSBC Trinkaus & Burkhardt AG who recommends investors buy the stock. ``Deutsche Bank gets its foot in the door but doesn't have to pay a high premium and make an offer to remaining shareholders.''

Deutsche may pay about 2.5 billion euros ($3.5 billion) for a stake of just under 30 percent, Frankfurter Allgemeine Zeitung reported, without saying where it got the information.

Deutsche Bank also agreed to buy a 40 percent holding in Russian investment management company UFG Invest to bolster its asset management business.

The following stocks also rose or declined in German markets. Symbols are in parentheses.

Conergy GY (CGY GY) rallied 54 cents, or 6.7 percent, to 8.64 euros, the biggest increase in two weeks. South Korea's LG Electronics Inc. agreed on a joint-venture with Germany's second- largest solar company to make solar cells.

E.ON AG (EOAN GY) dropped 70 cents, or 1.9 percent, to 35.30 euros, the lowest in more than a year. Goldman Sachs Group Inc. removed shares of the country's biggest utility from its ``conviction buy'' list.

Fresenius Medical Care AG (FME GY) advanced 74 cents, or 2 percent, to 37.95 euros, the highest since January. JPMorgan Chase & Co. lifted its share-price estimate for the world's biggest provider of kidney dialysis 11 percent to 47 euros.

Nordex AG (NDX1 GY) rallied 1.20 euros, or 5.8 percent, to 21.80, the steepest gain in six weeks. The windmill maker got a 500 million-euro ($698 million) order from Danish energy provider Scan Energy A/S.

Separately, Chief Executive Officer Thomas Richterich warned of hostile takeover dangers in the environmental technology industry, Financial Times Deutschland said, citing an interview.

To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.