By Daniela Silberstein
June 29 (Bloomberg) -- European stock futures retreated, indicating the Dow Jones Stoxx 600 Index will drop after its first back-to-back weekly declines since March. Asian shares fell for the first time in four days and U.S. futures slipped.
Anglo American Plc may be active after the Sunday Telegraph said that the mining company is considering a partnership with Aluminum Corp. of China in Anglo’s Brazilian iron-ore business. UBS AG may move as Sonntag said the Swiss bank plans to reach an agreement with U.S. tax authorities that may cost as much as $4.6 billion.
Futures on the Dow Jones Euro Stoxx 50 Index slid 0.7 percent to 2,372 at 7:23 a.m. in London.
The MSCI Asia Pacific Index lost 1 percent, erasing an earlier gain of as much as 0.3 percent on speculation that equity sales by Daiwa Securities Group Inc. and Mizuho Financial Group Inc. will dilute shareholder value. Futures on the Standard & Poor’s 500 Index decreased 0.7 percent.
Europe’s Stoxx 600 last week posted its first consecutive weekly declines since the start of the rebound in March on concern that a global economic recovery will falter. The gauge has lost 4.8 percent since June 11 after a three-month, 36 percent rally drove valuations to 25.4 times earnings, the highest level since 2004.
Anglo American may move. The mining company that last week rejected Xstrata Plc’s proposed merger plans to begin talks with Chinalco about investing in Anglo’s Brazilian iron-ore business, the Sunday Telegraph reported.
Anglo Leadership
Separately, Anglo approached former Rio Tinto Chairman Jim Leng and National Grid Plc’s John Parker to replace Mark Moody- Stuart, the Sunday Times reported. Anglo is in talks with Dubai Natural Resources World to develop iron-ore sources in Brazil, the Times reported, without saying where it got the information.
UBS will probably be active. The European bank with the biggest losses from the credit crisis plans to reach an agreement with U.S. tax authorities that may cost as much as 5 billion Swiss francs ($4.6 billion), newspaper Sonntag reported, citing three unidentified “independent sources.”
UBS spokeswoman Sabine Jaenecke declined to comment when contacted by Bloomberg News.
Daiwa, Japan’s second-largest brokerage, slumped 12 percent after saying it plans to raise about 240 billion yen ($2.5 billion) in a share sale. Mizuho, Japan’s third-biggest bank by market value, lost 4.2 percent after people familiar with the matter said it may start selling shares as early as this week.
Vodafone, Porsche
Vodafone Group Plc and Deutsche Telekom AG may be active. Vodafone, the world’s largest mobile-phone company, is considering a bid for T-Mobile UK Ltd., the British wireless unit of Deutsche Telekom, a person familiar with the situation said.
Porsche SE may move after the automaker’s supervisory board Chairman Wolfgang Porsche balked at an ultimatum from Volkswagen AG and the state of Lower Saxony to agree on a blueprint for the merger of the two carmakers. A June 29 deadline to agree the corporate marriage that was first reported in German newspapers is “blackmail” and “damaging” to the companies, Porsche, who is also a major shareholder in the eponymous sports-car maker, said in a statement. “We won’t let ourselves be blackmailed.”
To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net
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