European bourses fell back a little from Monday's record highs with the FTSE Euro-bloc 100 index shedding 0.1 per cent at 1,136.93. The FTSE Eurotop 100 gave up 0.3 per cent at 3,152.90 and the broader FTSE Eurotop 300 lost 0.2 per cent at 1,366.94.
Frankfurt ended 12.72 lower at 5,612.90 on the Xetra Dax index after surviving a wave of profit-taking which at one stage sent the benchmark down to a session low of 5,580.13. Industry consolidation hopes got behind DaimlerChrysler after executive Juergen Schrempp let it be known that the motor giant had been in partnership talks with up to 15 companies. The shares rose €1.59 to €89.10.
With a generally firmer motor sector, Volkswagen, hit on Friday by a Deutsche Bank downgrade, rallied €1.69 to €63.35 on news of an 8.5 per cent increase in unit sales for the first half of 1999.
Telecoms group Mannesmann, up more than 50 per cent this year, found itself at the sharp end of broad profit-taking. The stock came off €3.95 to €154.
Insurers also had an unsettled session. Munich Re lost €5.00 at €190.60 and Allianz dropped €3.57 at €290.30.
Paris rallied from an early fall to close almost flat as heavy trade in oil groups lent the market support. TotalFina and Elf Aquitaine accounted for more than 30 per cent of turnover after the announcement on Monday that Total had launched a hostile €42 billion bid for Elf. Total rose €6 or 4.7 per cent to €134.50, while Elf ended €3.60 or 2 per cent higher at €180.90.
Sanofi-Synthelabo, the pharmaceuticals group, recovered after its 5.8 per cent fall on Monday on news that Total planned to dispose of Elf's stake in the group. Sanofi shares closed 1.55 or 3.9 per cent up at 41.60.
Carrefour, the supermarket group, fell after Morgan Stanley Dean Witter lowered its rating of the stock from outperform to neutral . The shares finished €2.50 or 1.8 per cent down at €139.90.
Amsterdam marked time as a firm undertone for equities was offset by weak bonds and the AEX finished just 0.79 easier at 581.26.
Against the trend, food group Numico powered 7.6 per cent higher after sealing a deal to buy GNC of the US. Broker upgrades for the stock abounded. Goldman Sachs saw the transaction doubling Numico's sales and giving a significant boost to earnings in 2000 and beyond. The shares put on €2.60 to €37, off a high of €37.75. Takeover rumours sent mid-cap food group Wessanen 60 cents or 4.7 per cent higher to €13.40.
Merger partners Pakhoed and Van Ommeren extended Monday's gains. Pakhoed closed 75 cents higher at €27.50 while Van Ommeren was €1.25 ahead at €36.15.
