Share indices in Paris surged to record levels late in the session, powered by France Telecom and its remarkable 25 per cent gain. The CAC-40 was up 3.5 per cent or 221.23 to 6,477.55.
France Telecom, which announced flotation details of its Wanadoo Internet offshoot hard on the heels of very strong 1999 results, gained €44.50 to €219. On the broader market but still within the Internet world, TF1, the television group, climbed 9.2 per cent or €71 to €839 after it announced plans to launch a high-speed Internet access service later this year.
Frankfurt pushed ahead strongly in the final part of the session to reverse early weakness and lift the Xetra DAX index 217.84 to 7,945.77 for a three-day advance of 357 points.
The turnaround in sentiment produced a broadly based rally. Banks, initially weak, ended in fine form with Deutsche Bank €1.96 higher at €87.95. Deutsche Telekom kept investors on the edge of their seats amid a continued rumble of acquisition rumours that sent the shares up to €99.77 at one stage. The latest story, spurred by press reports, linked the German heavyweight with Qwest Communications of the US. Telekom denied that it was in talks but closed €7.39 or 8 per cent better at €99.38.
Amsterdam ended with the AEX index up 3.95 at 672.59 after a session of very narrow trading. Royal Dutch tracked the better tone generally for oil heavyweights, adding €1.15 at €54.99. Philips lost 90 cents at €205.95 on what brokers described as modest profit-taking.
Heineken fell €2 or 3.8 per cent to €50.50 after marring a solid profits statement by expressing an interest in expanding its British brewing operations.
In Milan, Olivetti shot up 9 per cent to €4.50 and Tecnost gained 7.4 per cent to €4.57 on renewed talk of a possible merger between the two to shorten the chain of command controlling Telecom Italia. Motor group Fiat gained 4.3 per cent to 33.05 on continuing rumours of alliances.
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