Expectations of more consolidation in the telecoms sector lent support to a number of bourses. The FTSE Eurobloc 100 index put on 14.26 to another record high of 1,186.70 while the FTSE Eurotop 100 was 31.40 higher at 3,280.24. The FTSE Eurotop 300 index gained 13.91 to 1,411.64.
Frankfurt rose 68.24 to 5,859.29 on the Xetra Dax index with a 9.5 per cent gain by Mannesmann supplying much of the upturn. Mannesmann remained the star attraction after Vodafone AirTouch confirmed at the weekend that it was set to launch a €100 billion takeover bid. Mannesmann jumped €17.6 to a record high of €202.98 to extend its rally to 33.5 per cent over the past six trading sessions.
News that construction group Philipp Holzmann had opened insolvency talks with bank creditors sent construction rival and big shareholder Hochtief down sharply. The announcement also hit Deutsche Bank which has a 15 per cent stake in Holzmann.
Hochtief, which owns 25 per cent of Holzmann, tumbled €1.61 to €37.99. Deutsche Bank came off 31 cents at €51.77. Commerzbank shed 50 cents at €34.20 but Dresdner added €2.00 at €51.70.
Paris edged cautiously higher, overcoming an uncertain start on Wall Street and a sharp fall in Renault to notch up its 12th consecutive record close.
The CAC-40 index rose 36.62 to 5,178.13, led higher by technology and banking stocks. The index has gained just over 10 per cent since the rally began on October 28th. Shares in the carmaker fell sharply as renewed scepticism emerged over the aggressive restructuring of Nissan, in which Renault has a substantial stake.
Nissan lost over nine per cent in Tokyo, pulling Renault €2.40 lower to €42.90 for a fall of over 5 per cent. Strong gains elsewhere offset Renault's tumble. Equant surged €4.55 to €94.75 on the back of the US technology rally. Telecoms turned in a robust performance as news that Mannesmann had rejected a bid from Vodafone fuelled speculation about consolidation in the industry. Vivendi and Bouygues profited, gaining 40 cents to €75.40 and €10.9 to €398.9.
Amsterdam came within a whisker of reaching an all-time high with the AEX index adding 9.84 at 599.71 as buyers swung behind financials and heavyweight internationals.
Philips rose €4.25 to €115.10 and Royal Dutch 94 cents to €60.13, buoyed respectively by enthusiasm for tech-related shares and the upbeat outlook for oil. Unilever gained €1.35 at €54.95. Luxury goods group Gucci, which is Italian-based but listed in Amsterdam, jumped €3.15 to €79.15 on news of a $1 billion takeover.
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