The FTSE Eurofirst 300 was down 0.2 percent to 1,364.88 on Wednesday as a result of profit-taking and the fallout of high commodity prices.
After the announcement that Nasdaq had acquired nearly 15 percent of the London Stock Exchange, mergers within the sector became a hot topic of conversation. Among the moves being rumored were a merger of the LSE and Euronext in order to stave off a possible hostile takeover of LSE by Nasdaq, with the Tuesday move only an opening gambit. Amid the rumors, Euronext added 1.7 percent to €67.35. Deutsche Borse also benefited from the talk, rising 1.5 percent to €112.48.
Talk of possible bids also had an effect on the construction and telecommunications sectors. In construction, Spanish group Sacyr-Vallehermoso and French company Eiffage both were down on the day after it was said that Sacyr might soon make a bid for Eiffage. Sacyr dropped 2.4 percent to €25.86, while Eiffage was down 1.1 percent to €121.80.
In the telecommunications sector, KPN was up and Belgacom was down slightly on reports that Belgacom might bid for KPN. Belgacom lost 0.1 percent to €27.81, while KPN added 1.6 percent to €9.67. Belgacom’s chief executive said that no bid for KPN was forthcoming, but the company has expressed an interest in buying Vodafone’s stake in Belgian operator Proximus. However, analysts believe that a move in that direction would find Belgacom in competition with companies such as Telekom Austria, which was down 0.9 percent on the day to €18.44.
Elsewhere in the telecommunications sector, Ericsson added 2.8 percent to €29.30 on an increased target share price, from SKr30 to SK4 32, from Lehman Brothers. Nokia dropped 1.2 percent to €17.38 on profit-taking and despite comments from Credit Suisse that Nokia’s valuation is attractive and its product portfolio was improving.