Takeover talk, telecoms and techs boost bourses

A day of fresh records in Europe saw the FTSE Eurobloc 100 index record another all-time high with a gain of 1.1 per cent to 1,318.38.

The FTSE Eurotop 100 index added 0.8 per cent at 3,494.32 and the broader FTSE Eurotop 300 index ended 0.7 per cent better at 1,514.53.

Paris was in record-breaking mood as investors again focused on telecoms and other tech-related stocks. The CAC-40 index ended 92.05 or 1.7 per cent better at 5,621.29. Canal Plus extended its gains this week to 30 per cent after rising a further €13 to €140. Pushing the stock was a welter of rumour that Vivendi was set to sell its 9 per cent stake in the pay-TV group to Telefonica to facilitate an outright takeover bid by the Spanish telecoms company.

Bouygues was again firmly in the spotlight, making further rapid advances with a gain of €40.50 to €595 amid gathering takeover speculation. Deutsche Telekom and KPN of the Netherlands were both said to be poised to strike, possibly mounting full bids for Bouygues itself as a means of taking control of the group's 54 per cent stake in Bouygues Telecom, France's third-largest mobile phones operator.

These performances were chased by a number of other tech-related gains. France Telecom put on €4.30 at €116 and computer network services group Equant gained €6.20 at €105.

Frankfurt extended its record run with solid gains for financials and Deutsche Telekom lifting the Xetra DAX index by 73.85 to 6,492.53. Deutsche Telekom, the index heavyweight, rose €4.65 to €65.95. In financials, banks stood out with Deutsche Bank adding €1.12 at €70.90 and Dresdner Bank gaining €2.15 at €72.18.

Amsterdam hit its third record high this week with the AEX index gaining 10.04 to 653.65. KPN, caught up in telecoms consolidation talk, rose €6.90 or 7.9 per cent to €94.60. Philips tracked the record run in New York for the Nasdaq composite, adding €3.75 at €131.90. Media stocks firmed, VNU gaining €2.07 at €47.02.

Milan resumed an upward track with Internet-related and telecoms stocks leading the way after a late round of profit-taking in the previous session. The Mibtel index finished 522 or 1.9 per cent higher at 27,455.

The heavily-traded Olivetti put on 4.2 per cent to €2.70 while Telecom Italia shot up 5.2 per cent to €13.45 on confirmation that the group expected to float its Internet business, Tin.it, early next year.

Helsinki ran out of steam as early gains in Nokia were erased by profit-taking. The Hex general index turned back from a high of 13,707.34 to close just 1.62 firmer at 13,412.54.

Nokia peaked at €171.80 before pulling back to close 2.7 per cent lower on the day at €166.11 while telecom operator Sonera bounced back to register a rise of 6.1 per cent at €59.50. Mobile phonemaker Benfon dropped 10 per cent to €11.50, giving up some of its 80 per cent gains over the previous two days on news it would introduce an Internet-enabled phone in February.