Metals and engineering group Mytilineos Holdings acquired a further 6.23 percent of Aluminium of Greece yesterday, lifting its stake to about 48 percent. Canadian aluminium producer Alcan Inc had notified the company of its plan to exercise its option on the shares, Mytilineos said in a stock market filing. It bought 2.69 million shares at 3.47 euros per share from Alcan, valuing the transaction at 9.3 million euros. Mytilineos acquired a major stake in Aluminium of Greece from Alcan last year. Earlier yesterday, Mytilineos sold a 5.3 percent stake in Aluminium of Greece via a private placement to foreign institutional investors at 19 euros per share for 43.7 million euros. UBS was the bookrunner for the placement. (Reuters)

NICOSIA (Reuters) - Cyprus said yesterday it expected its budget deficit would fall below 2 percent of gross domestic product this year, spurred by better tax revenues and containment of spending. Public debt was forecast to fall to 67 percent, Finance Minister Michael Sarris told a news conference. Both indicators are closely monitored as part of Cyprus’s compliance to EU regulations for eurozone entry. It hopes to adopt the euro in January 2008. “The reduction in the deficit is a combination of a containment of expenses and our tax collection capacity, which has been strengthened considerably,” Sarris said. Cyprus’s statistics department released data on Thursday showing the budget deficit fell to 2.4 percent of GDP in 2005 and the public debt to 70.3 percent.

Telecoms equipment-maker Intracom reported yesterday a bigger-than-expected 85.8 percent fall in net profit last year, hit by slowing sales and project delays. Greece’s largest telecoms equipment-maker said net profit fell to 3.2 million euros in 2005 from 22.7 million euros a year earlier. Earnings before interest, tax, depreciation and amortization (EBITDA) declined 46 percent to 50.8 million euros, while sales fell 13 percent to 535.4 million euros. “Weak results are explained by the drop in telecom revenues due to lower fixed-line operators’ capital expenditure and by the drop in subsidiaries’ results, especially in the construction sector,” Intracom said in a statement. In November, management warned that project delays and rising competition would have a negative impact on 2005 sales and financial results. Intracom shares closed 1.33 percent down at 5.94 euros yesterday. The stock trades at 33.4 times estimated 2006 earnings, above the European sector’s 20.79 multiple based on Reuters Estimates. Intracom spun off its telecoms, defense and information technology units in January. In February, it reached a non-binding deal to sell a 51 percent stake in Intracom Telecom to Russia’s Sistema for about 120 million euros. Intracom, which has subsidiaries in 16 countries, has said it is keen to expand abroad to offset slowing domestic revenues and growing competition. The company will not pay a dividend for 2005. It paid 0.10 euros in 2004.(Reuters)