Lloyds Share News (LLOY)

By Adam Cancryn Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York dropped sharply Tuesday, driven by worries over European banks and reports of a slowdown in growth worldwide. The Bank of New York index of ADRs closed down 3.33% to 113.72. European financial companies closed lower as concerns emerged over Thursday's planned expiry of EUR442 billion ($539.7 billion) in European Central Bank one-year loans to euro-zone banks. Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) lost 7.3% to $10.12, Banco Santander SA (STD, SAN.MC) dropped 6.5% to $10.29 and Allied Irish Banks (AIB, ALBK.DB) fell 7.4% to $2.27. Disappointing economic reports in Europe and China also pulled mining stocks lower. Rio Tinto Ltd. (RTP, RIO.LN) slipped 6.2% to $45.42, while Australia's BHP Billiton Ltd. (BHP, BHP.AU) lost 5% to $63.37, reflecting fears that coal demand could diminish with a weakening world economy. The European index fell 3.1% to 102.64. U.K. financial services company Lloyds Banking Group PLC (LYG, LLOY.LN) is seeking to raise $300 million in senior notes from U.S. retail investors. Lloyds will offer for the first time to U.S. retail investors the chance to buy notes maturing in July 2050 for $25 each, with a coupon rate of around 7.75%. Lloyds' shares ended down 4.2% to $3.23. Spain's Telefonica (TEF, TEF.MC) is considering raising its offer for the stake held by Portugal Telecom SGPS S/A (PT, PTC.LB) in Brazilian mobile market leader Vivo Participacioes SA (VIV, VIVO4.BR). Telefonica's shares lost 5.3% to $55.19, Portugal Telecom slid 0.9% to $10.03 and Vivo Participacioes fell 3.9% to $26.01. The Latin American index lost 4.6% to 336.58. Shares of Brazilian mining giant Vale (VALE, VALE5.BR) were down 6.5% to $24.91 amid a broad market decline stemming from the Conference Board sharply revising lower its April leading economic indicator for China. The move raised fears that a key driver of the global economy could slow. Goldman Sachs downgraded its recommendation for shares of Brazilian utility company Companhia Energetica de Minas Gerais (CIG, CIGC, CMIG4.BR), known as Cemig, to neutral from buy. It said the market has continued to take a negative view on the potential outcome of October elections--Cemig is controlled by the Minas Gerais state government--and potential acquisitions, and the stock has continued to underperform. Cemig's shares fell 3.3% to $14.68. The Asian index slipped 3.4% to 114.03. CIMB said that China's coal price cap will likely hurt the earnings of coal miners like Yanzhou Coal Mining Co. (YZC, 600188.SH, 1171.HK) due to the rising policy risks of more price controls and the possibility of resource taxes. Shares of Yanzhou Coal Mining slipped 8% to $18.74. Chinese Internet search provider Baidu Inc.'s (BIDU) shares slid after Google Inc. (GOOG) said it will change the way it operates in China to keep providing online content in the country. Baidu's shares lost 9.2% to $67.57. The joint venture between General Electric (GE) and Hitachi (HIT, 6501.TO) expects to resubmit its nuclear-reactor design into the U.K. regulatory process by June 2011, after it completes the process in the U.S. The company expects the design to clear the U.K. regulatory process within two years. Hitachi's shares fell 4.7% to $36.07. The emerging markets index dropped 4.2% to 281.60. Tata Motors (TTM, 500570.BY) earlier this week said it plans to raise $1 billion through a mix of debt and equity and use part of that to restructure its debt. Edelweiss Securities said it may also mean the company is significantly free cash flow negative, indicating it is making large investments that may not pay off in the long run. Tata lost 4.5% to $16.89. Bucking the trend, shares Teva Pharmaceutical Industries Ltd. (TEVA, TEVA.TV) gained 1.3% to $51.98 after German pharmaceutical and chemicals company Bayer AG (BAYRY, BAYN.XE) said it has dropped its patent suit in Delaware against Teva and Barr Pharmaceuticals Inc. (BRL) for infringing on its oral contraceptive Yaz. -By Adam Cancryn, Dow Jones Newswires; 212-416-3261; adam.cancryn@dowjones.com (END) Dow Jones Newswires June 29, 2010 16:53 ET (20:53 GMT)