Another strong session for Deutsche Telekom kept Frankfurt at a record high. The Xetra DAX closed 79.23 better at 7,629.11 after unwinding from a session peak of 7,676.56.
The FTSE Eurobloc 100 index shed 0.1 per cent at 1,441.96 while the FTSE Eurotop 100 index lost 0.3 per cent at 3,650.29. The FTSE Eurotop 300 index came off 0.3 per cent at 1,566.82.
Telekom rose to €96 amid acquisition rumours and a scramble by investors to maintain sector weighting ahead of Mannesmann's exit from the Xetra Dax index. The stock ended €4.30 higher at €92.50 as 11 million shares traded for a gain over the past week of 24 per cent.
Insurers Allianz and Munich Re were firm as the German cabinet approved a draft bill allowing tax efficient disposals of big share stakes. Allianz rose €12.10 to €352.35 and Munich Re €5.79 to €277.99.
Paris was in firmly positive territory until the US markets opened. Dealers said weakness on Wall Street provided investors with the excuse to take their profits in a pricey market. The CAC-40 index closed 26.06 lower at 6,271.60.
However Canal Plus continued its surge, adding another €21.90 to €279.90, after news that it will replace Mannesmann in the Euro Stoxx 50 index.
Bullish sentiment about Vivendi's venture with Vodafone AirTouch sent its share price up another €4.90 to €129.90. Vivendi has gained about 50 per cent already this year. TotalFina gained €5.60 to €147.10 after the European Commission cleared its merger with Elf.
Telecom and technology stocks were also responsible for much of the good news in Madrid, with the Ibex 35 at another record high of 11,939.5. It put on 104.7 or 0.9 per cent, much of it accounted for by the rise of Telefonica, which was up €1.35 or 4.6 per cent to €30.70.
Helsinki was at another record high, with the Hex index recording a rise of 133.46 or 0.8 per cent to 16,452.30. Nokia continued to break new barriers, closing at €204.20, a rise of €3.25.
Amsterdam ran up against profit-taking among AEX index big hitters and at the close the benchmark was off 0.51 at 667.15.
Milan pressed further into record territory, but only just, as the Mibtel index edged 4 higher to 30,972.
