Wednesday, August 22, 2007

Fredriksen Rumored Behind TUI Gain

German Stocks Advance, Led by MAN, Daimler, Siemens; TUI Jumps
By Andreas Hippin
Aug. 22 (Bloomberg)

German stocks advanced on speculation the Federal Reserve will cut interest rates to prevent a credit crunch from curbing economic growth.

``That the Fed will cut interest rates is almost common sense in the market,'' said Wolfgang Matejka, who oversees $3.3 billion as chief investment officer at Vienna-based Meinl Bank AG. ``We've seen most of the correction already. There's no reason for more panic selling.''

DaimlerChrysler AG, MAN AG and Siemens AG led advances by companies more sensitive to economic swings. TUI AG gained after the Financial Times reported Norwegian billionaire John Fredriksen was behind Geveran Trading Co. Ltd, which raised its stake in Europe's largest travel company.

The benchmark DAX Index rose 61.29, or 0.8 percent, to 7,486.04 at 2:00 p.m. in Frankfurt. DAX futures expiring in September climbed 72, or 1 percent, to 7,512. The HDAX Index of the country's 110 biggest companies added 1.1 percent.

TUI rallied 93 cents, or 5.4 percent, to 18.18 euros. Fredriksen, chief executive officer of Frontline Ltd., the world's largest tanker group, wants to force a break up of TUI and buy its shipping assets, the FT said in the Alphaville section of its online edition.

At Frontline, nobody was immediately available for a statement. Limassol, Cyprus-based Geveran told the company that it crossed the threshold of 3 percent of the voting rights on Aug. 10, TUI said yesterday.

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