Frankfurt pushed higher in afternoon trade as technology shares recovered from an uncertain start. SAP led the market higher, adding €13.70 or 6.7 per cent to €219.65, while Epcos also climbed, closing €4.44 higher at €116.90.
Heavyweight Deutsche Telekom had a better day, rising €1.44 to €59.37 in a correction after Wednesday's sharp fall on fears that it might bid for QWest as well as VoiceStream. Earlier, Telekom confirmed that it acquired a 51 per cent stake in Slovenske Telekomunikacie, which is being privatised by the Slovakian government.
Allianz pressed ahead, climbing €5.50 to €367.50 on speculation it could take over asset management businesses of Commerzbank and Dresdner Bank after a possible merger of the two banks.
Paris recouped early losses as Nasdaq opened strongly. Market attention was focused on Vivendi, the second most traded issue, which fell 0.6 per cent to €88. Its flotation of Vivendi Environnement, due yesterday, was postponed to next Thursday as a result of weak institutional demand, and the retail allocation was increased to 50 per cent.
Vivendi was also dogged by rumours that its merger with Seagram was encountering regulatory hurdles.
Telecom equipment company Alcatel was the most actively traded contracts with several winners of local loop contracts.
France Telecom rose 3.2 per cent to €154.80, helped by its subsidiary Orange, which unveiled investments, acquisitions, partnership and content deals to beef up its internet strategy.
Amsterdam erased early losses as technology shares were lifted by the strong US opening. The AEX index closed a marginal 0.67 higher at €687.00.
Investors in Zurich turned the spotlight on the insurance sector as an outbreak of takeover speculation sent Swiss Life soaring 17.6 per cent. One analyst said news that Italian insurer La Fondiaria Assicurazioni had raised its holding in the Swiss group to more than 10 per cent had prompted renewed merger and acquisition rumours involving Swiss Life.
