ADR Report: Shares Fall On Renewed Euro-Zone Worries
05/08/2012| 05:46pm US/Eastern
By Corrie Driebusch
International companies trading in New York closed lower Tuesday, in line with the broader market, as political deadlock in Greece fueled fears of further economic trouble in the euro zone.
The Bank of New York index of ADRs tumbled 1.5% to 122.36.
In Athens, New Democracy leader Antonis Samaras said Monday it was impossible to form a coalition government, opening a door for the second-biggest party, Coalition of the Radical Left, which has vowed to renegotiate the country's bailout conditions.
The National Bank of Greece SA (NBG, ETE.AT) ended sharply lower, off 9.1% at $1.91.
French banks tumbled, with BNP Paribas SA (BNPQY, BNP.FR), France's largest bank by market value, falling 3.9% to $19.06, Societe Generale SA (SCGLY, GLE.FR) giving up 2.8% to $4.54 and Credit Agricole SA (CRARY, ACA.FR) shedding 1.8% to $2.24.
The European index lost 1.3% to 112.76.
Oil futures sank to lows not reached since Dec. 19 on the renewed euro-zone fears, weighing on the shares of energy firms.
BG Group PLC (BRGYY, BG.LN) dropped 2.9% to $21.47, and Royal Dutch Shell PLC (RDSA, RDSB, RDSA.LN, RDSB.LN) fell 2.3% to $68.17.
The Asian index declined 1.4% to 121.57.
Mindray Medical International Ltd.'s (MR, K3QD.SG) first-quarter earnings fell 3% as the medical-device company recorded higher expenses and weaker margins, though revenue improved. Shares of the Chinese company shed 1.3% to $31.38.
The Latin American index dropped 2.6% to 335.93, and the emerging-markets index ended 2% lower at 285.39.
Royal KPN NV (KKPNY, KPN.AE) said Tuesday that America Movil SAB de CV's (AMX, AMOV, AMX.MX) 8-euro-per-share ($10.40) cash offer to raise its stake in the Dutch incumbent mobile operator "substantially" undervalues the company. Still, KPN's management and supervisory boards will review carefully the offer and seek further clarification as to America Movil's intentions, the company said in a statement. America Movil's shares dropped 9.6% to $25.53.
-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; email@example.com