Broker imaginations moved into overdrive on the confirmation that DaimlerChrysler had indeed hired Deutsche Bank and JP Morgan to advise on a defence strategy.
Deutsche Bank denied that a takeover was in view, but this did not stop analysts from speculating on some sort of predatory move against the group, possibly at DaimlerChrysler's weakest point - its US operations.
"Its anybody's guess, but from where we sit the betting is for a Chrysler management buyout, backed by a big US investor," said one Frankfurt-based analyst.
It was a theory that prompted most market fingers to point at Kirk Kerkorian, the disgruntled billionaire investor who recently reduced his stake in DaimlerChrysler from 4.6 per cent to around 2.3 per cent.
Up 2 per cent on Wednesday, DaimlerChrysler continued to gain in early trading before falling to €50.22, down 1.6 per cent, at the close of another session of robust turnover.
A larger than expected fall in fourth quarter earnings at Deutsche Bank outweighed the promise of huge savings from a structural reform and the shares tumbled 6.3 per cent to €98.02.
Hotels leader Accor fell steeply, amid concerns over the slowing US economy. Around a third of Accor's earnings arise in the US and although the group sales for 2000 came in at the top end of the broker forecast range, the stock fell 6.4 per cent to €46.04.
KLM shares jumped 3.1 per cent to €28.40 and gave the airline sector as a whole a push in the process. Air France added 4.2 per cent at €24.37 and Lufthansa 5 per cent at €26.15.
Corus jumped 12.1 per cent to €1.30, with a massive 33.5 million shares traded in the wake of the Draconian restructuring wheeled out by the Anglo-Dutch steel group. French rival Usinor, hit by a downgrade to "hold" from "add" at HSBC, shed 1 per cent at €14.61.
Motor components leader Valeo jumped to €51.35 on news of solid operatings margins in 2000 and jobs cut-led streamlining for the current year, but the stock subsequently fell back as investors had second thoughts about the group's big US sales base. The stock finished off 4.2 per cent at €48.25.
Better than expected results plus news of a 10 per cent share buyback sent the B shares in truck and bus maker Volvo up 6.7 per cent to SKr190.50.
