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STOCKS NEWS EUROPE-Housebuilders slide on refinancing fears

Reuters - Wednesday, October 8

STOCKS NEWS Reuters Results diary

Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]

09:16GMT 07Oct2008-Housebuilders slide on refinancing fears

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Shares in Taylor Wimpey <TW.L> drop 6.3 percent, after earlier sliding as much as 40.5 percent, as the banking industry crisis raises fears the company will struggle to secure its refinancing package on favourable terms, an analyst says. The analyst adds that other housebuilders could also be affected.

"Taylor Wimpey hasn't refinanced yet and the more and more trouble we hear from the banking sector it's harder to see deals happening in favour of housebuilders. TW is the major one at risk but others could follow," says Panmure Gordon analyst Rachael Waring.

Taylor Wimpey declined to comment.

Barratt Developments <BDEV.L> is down 8.6 percent, while Persimmon <PSN.L> is off 1.9 percent.

Reuters messaging rm://john.bowker.reuters.com@reuters.net

09:00GMT 07Oct2008-Bechtle falls as WestLB cuts price target

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Shares in German IT supplier Bechtle <BC8G.DE> fall 7.4 percent, as WestLB cuts its price target on the stock to 13.5 euros per share, down from 20 euros, after SAP <SAPG.DE> on Monday warned that business had abruptly dropped off in the last two weeks of September.

"Yesterday, SAP issued a profit warning for Q3 citing widespread SME (small and medium enterprises) weakness," WestLB analysts write in a note, maintaining their 'hold' rating on the stock.

"While we are fully aware that Bechtle serves much smaller SMEs (of between 15 and 2,000 PC or IT workstations) than SAP, we still believe that the abruptness of the demand curtailment will reach Bechtle's main clientele, German SMEs," they add.

SAP on Monday said that due to the drop in business, third-quarter revenue from software and software-related services is now expected to increase less than previously estimated. For more double click on [ID:nL732922]

Reuters Messaging rm://christoph.steitz.reuters.com@reuters.net

08:52GMT 07Oct2008-Bank woes puncture Europe shares after strong start

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The pan-European FTSEurofirst 300 <.FTEU3> index trades 0.4 percent lower at 1,000.91 points, as banks take a beating amid reports of additional funding needs. The index had risen 2.6 percent in early trade.

Banks <.SX7P> are the top weighted losers on the index, with Royal Bank of Scotland <RBS.L> down as much as 39 percent on speculation that it is in talks for UK government funding, and Deutsche Bank <DBKGn.DE> down 14 percent on market talk of a capital increase, though a financial source dismissed the speculation.

The FTSEurofirst 300 fell 7.8 percent to a four-year-low close on Monday.

Reuters Messaging: brian.gorman.thomsonreuters.com@reuters.net

08:44GMT 07Oct2008-SAP lower as Q3 licenses disappoint

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Shares in SAP <SAPG.DE> slip 8 percent, making them one of the the worst performers on Germany's DAX <.GDAXI>, after the business software maker reports flagging third-quarter software sales growth, prompting brokerage price target downgrades.

SAP says third-quarter software sales should be around 740-750 million euros. The market estimate was around 860 million, says Rajesh Balasubramanian, an analyst at Credit Suisse, which lowers its price target to 33 euros per share from 42. SAP shares are trading at 26.54 euros.

"SAP spoke of a "sudden and unexpected drop" in business in the last fortnight of the quarter, which offset the solid execution that the company had seen till mid-September," Balasubramanian says in a note to clients.

"Thankfully, [SAP is] not just a new licence business," says UBS analyst Michael Brist. He points to service-related revenues helping to balance out the drop.

Brist says the big question will be the fourth quarter.

"We question to what extent slippage from the third quarter closes in gross margin. Given license's high gross margin, a major miss would hit profits."

SAP drags down Software AG <SOWG.DE>, Germany's second-biggest software company, which is the worst performer on the country's tech index <.TECDAX>. Software shares are down 12.8 percent at 29.36 euros. For more double click on [ID:nL6508365] and [ID:nWEN8854]

Reuters Messaging rm://tyler.sitte.reuters.com@reuters.net

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