German Stocks Advance for Third Day as MAN, ThyssenKrupp Climb

By Daniela Silberstein

Sept. 17 (Bloomberg) -- German stocks rose for a third day, with the DAX Index extending an 11-month high, as MAN SE rallied and gains in metal prices boosted the earnings outlook for raw- material producers.

MAN surged 3.3 percent as the Financial Times reported Volkswagen AG is considering a revamp of its truck division. ThyssenKrupp AG and Salzgitter AG, the country’s largest steelmakers, also advanced. E.ON AG added 1 percent following a report that the utility is looking into a possible acquisition of Oxxio.

The DAX Index climbed 0.6 percent to 5,736.81 at 9:49 a.m. in Frankfurt. The measure has rebounded 56 percent since March 6 as companies reported better-than-estimated earnings and economic data signaled the global recession is nearing an end. The broader HDAX Index increased 0.7 percent today.

MAN rallied 3.3 percent to 61.29 euros. Volkswagen is considering an organizational overhaul of its truck business which may see a tie-up with the German truckmaker and engineering group, the Financial Times said, citing people familiar with the company. DZ Bank AG raised its share-price estimate for MAN to 71 euros from 55 euros.

Volkswagen, Europe’s largest carmaker, climbed 1.5 percent to 124.07 euros, snapping a three-day decline.

ThyssenKrupp added 1 percent to 25.03 euros. Salzgitter gained 0.7 percent to 72.29 euros as copper and lead climbed on the London Metal Exchange. Higher commodity prices prompted Japanese steelmakers to start idled plants.

E.ON advanced 1 percent to 28.62 euros. The German utility is looking into possibly buying Dutch energy company Oxxio, Het Financieele Dagblad reported, citing an interview with Joost van Dijk, E.ON’s Benelux director.

Fresenius Medical Care AG, the world’s largest provider of kidney dialysis, and parent Fresenius SE climbed 3.3 percent to 33.73 euros and 3.1 percent to 38.83, respectively.

The following stocks also rose or fell in German markets. Symbols are in parentheses after company names.

Bilfinger Berger AG (GBF GY) climbed 81 cents, or 1.6 percent, to 50.22 euros. Germany’s second-biggest builder had its share-price raised to 60 euros from 45 euros at Bank of America Corp.

Continental AG (CON GY) increased 42 cents, or 1.1 percent, to 39.87 euros after CA Cheuvreux lifted its share-price forecast for Europe’s second-biggest car-parts maker to 43 euros from 35 euros.

Demag Cranes AG (D9C GY) gained 62 cents, or 2.5 percent, to 25.31 euros. The world’s largest maker of harbor cranes had its price estimate increased to 30 euros from 22 euros at Equinet AG.

Deutsche Boerse AG (DB1 GY) added 65 cents, or 1.2 percent, to 57.34 euros, snapping a two-day decline. A bid from Deutsche Boerse for London Stock Exchange Group Plc is “unlikely” and the two exchange operators make a “poor strategic fit,” Bank of America Corp. wrote in a report to clients. The brokerage cited bid speculation that boosted LSE shares yesterday.

Hochtief AG (HOT GY) advanced 1.28 euros, or 2.3 percent, to 56.49 euros. Equinet lifted its price forecast for Germany’s largest construction company to 82 euros from 72 euros.

Infineon Technologies AG (IFX GY) declined 8 cents, or 2.1 percent, to 3.73 euros. Europe’s second-largest maker of semiconductors was reduced to “underperform” from “buy” at Bank of America, which said the stock “looks expensive relative to others in the sector.”

SAP AG (SAP GY) dropped 39 cents, or 1.1 percent, to 34.22 euros. The world’s biggest maker of business-management software faces resistance over its planned price increases from small and medium-sized German companies, Frankfurter Allgemeine Zeitung reported.

SMA Solar Technology AG (S92 GY) gained 1.44 euros, or 2.2 percent, to 67 euros. Commerzbank AG raised its share-price estimate for the solar company to 70 euros from 60 euros.

To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.