Merger talk gives Paris small lift

Merger speculation provided sparkle in PARIS but with the weak Dow providing nothing in the way of support, the CAC-40 index managed a rise of just 10.93 to 3,612.50.

Synthelabo and Sanofi, the country's second and third largest pharmaceuticals groups, were higher on a press report that the two groups would finalise a merger plan next month.

Both companies declined to comment but Synthelabo put on 32 French francs to Ffr1,110 and Sanofi Ffr39 to Ffr999.

Euro Disney turned back from a high of Ffr9 to close 30 centimes weaker at Ffr8.25 in spite of reporting a 34 per cent rise in net income for 1997/98.

Frankfurt continued on a downward path, as the US rate cut failed to spark a turnaround in sentiment. The Xetra Dax index closed 17.65 lower at 4,700.69.

Banks closed mixed after being early beneficiaries of lower US rates.

Commerzbank lost 1.61 deutschmarks to DM52.25 as investors took profits after recent gains. Dresdner, by contrast, put on 85 pfennigs at DM61.40.

The car sector was a beneficiary of a relatively strong dollar. BMW put on DM15 to DM1,130, Volkswagen DM1.20 to DM130 and DaimlerChrysler DM1.10 to DM140.

Amsterdam slipped marginally as it continued a quiet period that some analysts think will last until the introduction of the European single currency at the start of next year.

The AEX index closed 1.73 lower at 1,053.60.

Milan ended marginally down on thin volumes. The Mibtel index fell 144 or 0.7 per cent to 20,775.