Stock markets @ Risk : LUSENET : TimeBomb 2000 (Y2000) : One Thread

I was asked to publish some articles about the German construction group "Philip Holzmann AG" and its recent struggelings. Two minutes ago the financial rescue of the co was published on a newschannel on tv. This is a really good news to almost 24,000 employees plus more than 30,000 subcontracters which have been facing their company's bankrupcy for one week now.

This is what Financial times wrote on Munday / Tuesday about the impact on the German stock exchange: >>>> MONDAY: Holzmann rocks Frankfurt By Michael Morgan, Christopher Swann and Peter Hall

Shares in FRANKFURT turned back after a positive start as gains in Deutsche Telecom were offset by losses in banking issues when investors braced themselves for the fallout from the failure of weekend talks to save builder Philipp Holzmann from insolvency.

The Xetra Dax index turned back from a high of 5,998.46 to close 136.08 or 2.3 per cent lower at 5,819.89.

Deutsche Bank lost E2.55 to E66.40 as it failed to convince other creditors to back a rescue package for Holzmann, the troubled construction group, in which it has a 15 per cent stake. Holzmann The FTSE Eurobloc 100 index lost 17.57 at 1,190.28. The FTSE Eurotop 100 fell 37.44 to 3,270.08 while the broader FTSE Eurotop 300 settled 14.84 lower at 1,406.43. For full FTSE European indices see Euro Markets page. shares were suspended as the company said insolvency proceedings would begin today after the marathon talks had failed.

Dresdner Bank tumbled E3.30 to E48.70 on Holzmann worries and its own restructuring plan announced on Friday that envisages heavy investment in investment banking in the next two years.

HypoVereinsbank lost E3.20 to E65.30. The bank ranks second behind Deutsche in Holzmann's list of creditors.

Deutsche Telekom closed E1 lower at E54.30 after a press report said it was poised to launch a bid for Britain's Cable and Wireless. Telekom declined to comment.

Mannesmann fell E6.90 to E186.20 on worries that political intervention could derail Vodafone's takeover bid. <<<<

I guess that if Holzmann really would have gone bankrupt today, tomorrows loss on German market would have been 3 to 5 %.


-- Rainbow (, November 24, 1999

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