The FTSE Eurofirst 300 added 1.9 percent during the week to close at 1,396.45 on Friday, driven largely by activity among Spanish stocks. The activity made Spain’s IBEX-35 index the top performer in Europe over the week with a 4.4 percent gain to 12,934.7. The IBEX was as high as 13,001.6 at one point on Friday.

In the utilities sector, Endsea added 14.4 percent over the week to close at €33.55 on the news that Acciona had purchased a 10 percent stake in the utility and was thinking of buying more. This move was seen as a potential deal-breaker for the proposed Endsea/Eon merger. Eon, the German utility, reacted by raising its bid by 38 percent, but that sent it to a loss of 2.7 percent on the week to €93.48 as investors feared a bidding war. Acciona, on the other hand, was 5.9 percent higher on the week to €120.

Meanwhile, Iberdrola added 9.4 percent over the week to €35.30 after construction group ACS said that it had become the largest shareholder in the power generator with a 10 percent stake. Dresdner Kleinwort said that the purchase by ACS could protect Iberdrola from foreign takeover attempts. It was also seen as a step toward a merger between Iberdrola and Union Fenosa. The activity sent Union Fenosa 0.3 percent higher to €40.28, while ACS added 2.9 percent to €37.40.

Also in Spain, this time in the construction sector, Sacyr Vallehermoso gained 13 percent during the week to €35.85, largely on speculation that it would be a bids target. The rumors had ACS as a possible bidder, but most analysts dismissed the talk.

The European equities markets were up again on Thursday as bids rumors continue to circulate in a number of sectors. The FTSE Eurofirst 300 added 0.1 percent on the session to 1,398.00.

In the utilities sector, Endsea dropped 1.8 percent to €34.39 after Eon raised its bid in response to Spanish conglomerate Acciona’s purchase of 10 percent of Endsea. Acciona fell 0.1 percent to €119.90 and Eon dropped 0.3 percent to €92.65. Meanwhile Gas Natural, which is also said to be interested in Endsea, declined by 2.7 percent to €29.38.

In the semiconductors sector, STMicroelectronics was 3.1 percent higher to €13.75 on talk that it could receive bids from private equity, even though it would be a difficult purchase due to its 28 percent ownership by the Italian and French governments. That was the factor cited by Cantor Fitzgerald Euorpe as it downgraded STM to “sell into strength”. Elsewhere in the sector, Infineon dropped 5.6 percent after it was reported that Taiwan company BenQ’s German handset unit will file for insolvency soon. Infineon is one of BenQ’s largest suppliers.

Among car and truck makers, MAN added 3.8 percent to €65.68 after it was said that Volkswagen could offer for the company. MAN has been trying to purchase Scania, the Swedish truck maker in which VW owns a major share, but VW’s chief executive has said he favors a deal that involves his company as well. VW dropped 0.1 percent on the news to €67.55, but Scania added 1.4 percent to SKr439. Elsewhere in the sector, Renault was 0.8 percent higher to €90.55 on positive broker comments, while Peugeot dropped 2.8 percent to €44.57 on lower sales volumes in July and August.

The FTSE Eurofirst 300 was 1.4 percent higher on Tuesday to 1,389.25, its highest close in over four months. Mergers and acquisitions again furnished most of the action, joined by gains in the oil sector after crude oil prices rose a bit overnight.

The proposed Scania/MAN merger again made news as Volkswagen, the largest shareholder in Scania, came out against the deal. VW’s chief executive criticized the proposed deal and suggested an alternative one which would involve not only MAN and Scania, but VW’s Brazilian truck business as well. When all was said and done, Scania and Investor, it’s second largest shareholder were lower on the session, but both VW and MAN saw gains.

Investor dropped 1.3 percent to SKr152.50, while Scania’s A shares were 6.2 percent lower and the Swedish truck maker’s B shares declined 7.8 percent to SKr432 and SKr421.50 respectively. Volkswagen added 1 percent to €66.65, while MAN was 1.4 percent higher to €62.55.

In the utilities sector, meanwhile, Acciona purchased 10 percent of Endsea on Monday and said that it might make a further purchase. This move put the Endsea/Eon merger in question, which has been in the works since the beginning of the year, when Eon bid €27 billion in cash for Endsea. Also affecting the merger was a ruling from the European Commission which held that Spain had violated EU in certain conditions it put on Eon’s acquisition of Endsea.

While Eon said that the ruling strengthened its determination to pursue the deal, the German utility’s shares dropped 2 percent to €94.09. Acciona added 5.1 percent to €117.35, while Endsea gained 10.5 percent to €32.50. Elsewhere, Gas Natural was up 5.6 percent to €28.66 as it repeated its own hope to buy Endsea.

In the oil sector, OMV was 1.7 percent higher to €37.89, while Statoil added 3.6 percent to NKr152.50.

Despite gains in several sectors due to continuing mergers and acquisitions news and rumors, the FTSE Eurofirst 300 dropped 0.1 percent to 1,370.04 on Monday as crude oil prices continued to decline.

Speculation that Spanish construction company OHL was discussing a possible merger with French peer Eiffage sent Eiffage 3.6 percent higher to €78.25. OHL added 4 percent to €15.75. Meanwhile, Sacyr Vallehermoso gained 1 percent to €32.05 on rumors that Sacyr is thinking of adding to its current 33.3 percent holding in Eiffage.

In the pharmaceuticals sector, UCB of Belgium said it would purchase Schwarz Pharma of Germany, a move that Credit Suisse said made sense. The news sent UCB 0.1 percent lower to €47, but Schwarz was 17.7 percent higher to €89.07. Others in the sector were benefited by the news, including Novo Nordisk, which gained 1.3 percent to DKr432.

There was also bids talk in the airlines sector as Lufthansa was said to be looking to buy, although it said that remarks by its CEO had been misinterpreted. Lufthansa dropped 0.4 percent to €16.14. Despite the denials SAS, which was said to be one of the rivals Lufthansa was interested in, was 2.1 percent higher to SKr97. Ryanair added 3.7 percent to €8.45. The gains were helped as well by the falling oil prices.

Declines in the oil sector were substantial. Neste Oil fell 3.8 percent to €21.16, while Norsk Hydro dropped 4.5 percent to NKr138.75 and Statoil declined 5 percent to KNr147.25.

Despite a series of rumors relating to mergers & acquisitions in several sectors this week, the European equities markets were lower on Friday and for the week as investors became concerned again about the state of the US economy, which seems to be slowing. The FTSE Eurofirst 300 was 1.1 percent lower on Friday to 1,370.86, bringing it to an 0.2 percent decline for the week even though it hit four-month highs earlier in the week.

One sector that saw activity on the M&A front was pharmaceuticals. German company Merck announced that it will purchase Serono to create the seventh largest pharma group in Europe. The deal will cost Merck €10.6 billion. Merck gained 1.2 percent over the week to €76.90, while Serono added 21.8 percent to SFr1,076. Elsewhere in the sector, Altana added 0.2 percent to €45.31 on the news that it will sell its pharmaceutical unit to Nycomed.

Continental added 2.7 percent to €88.36 after it said that had been approached about a deal. The gain came even though discussions had ended after analysts expressed the opinion that the German tire maker is a good target for a leveraged buyout.

Swedish truck maker Scania B shares gained 6.5 percent to €452 after it rejected an offer from MAN. MAN dropped 1.9 percent to €62.77 on the news, but the two biggest shareholders in Scania saw gains out of the issue. Volkswagen added 0.4 percent to €65.23 and Investor was 1.6 percent higher to SKr155.50.

The FTSE Eurofirst 300 was 0.4 percent higher on Thursday, to 1,386.58 as mergers and acquisitions activity, both agreed to and rumored, again was in the spotlight.

The news that Merck will buy a 64.5 percent stake in Serono mobilized the pharmaceuticals sector. Merck, which will spend SFr16.6 billion in the deal, dropped 4.7 percent on the session to €74.65. Serono, however, added 17.6 percent to SFr1,076 on the announcement of the deal. Elsewhere in the sector, Altana gained 1.2 percent to €45.17 after it said it will sell its pharmaceuticals business to Danish company Nycomed. In addition, Sanofi-Aventis was 1.4 percent higher to €69.65.

Bids rumors led to gains in the Swiss specialty chemical sector. On the strength of a rumor that Dow Chemical is thinking of bidding, Ciba gained 2.9 percent to SFr73.60, while Clariant added 3.7 percent to SFr16.90 amid speculation of interest from private equity.

EADS was 2.4 percent lower to €22.26 after it announced yet another delay in delivery of the A380 superjumbo jet. Not all the news for EADS was bad, however, as Lufthansa said it has put in an order for 30 Airbus A320s, a smaller aircraft, and has the option to order an additional 30 planes.

The Norwegian oil sector was lower on recent declines in crude oil prices. Statoil dropped 3.2 percent to NKr155, while Norsk Hydro fell 4 percent to NKr145.

The FTSE Eurofirst 300 added 1.1 percent on Wednesday to close at 1,380.92 as several sectors were affected by mergers and acquisitions rumors.

In the retail sector, Ahold was said to be thinking about selling its US operations to Belgian retailer Delhaize. Hedge funds Paulson & Co and Centaurus Capital, which own 6.4 percent of Ahold between them, have been urging the company to sell their US division for some time. Ahold was 1.4 percent higher to €8.08 and Delhaize added 1.8 percent to €62.20.

French builder Eiffage gained 5 percent to €75.25 after it said it is in talks with Spanish company Sacyr Vallehermoso. It was unclear whether there was merger in the works or if Sacyr would attempt to purchase outright the portion of Eiffage that it does not already own. According to JP Morgan, however, it might cost Sacyr too much to buy the 68 percent of Eiffage’s shares that it doesn’t currently hold. At any rate, Sacyr added 2 percent to €31.42 on the news.

After admitting that it had been approached once and amid speculation that it could receive further inquiries, German tire maker Continental was 2.3 percent higher to €90.40. Dresdner Kleinwort said that the company was a good candidate for a leveraged buy-out, noting that any deal to do so would be the largest LBO in German history. Elsewhere in the sector, French rival Michelin added 1.2 percent to €55.35.

In Europe on Tuesday, the FTSE Eurofirst 300 dropped 0.6 percent to 1,366.20. Among the influences sending stocks lower was new data showing German investor sentiment lower, a slow start in the New York markets, and a state of emergency that was declared in Thailand due to an attempted coup there.

The telecommunications sector was in the news during the session. Telecom Italia dropped 1.4 percent to €2.17 on the news that its unions have called a strike for October 3 to protest TI’s restructuring. Also hurting the Italian telecom’s share price was a broker downgrade from Morgan Stanley, which lowered TI’s rating from “equal weight” to “underweight” and dropped its target share price from €2.50 to €2.10.

Elsewhere, the telecoms were more successful. Deutsche Telekom overcame the news of the German confidence decline to add 0.2 percent to €11.71. Morgan Stanley issued an upgrade from “equal weight” to “overweight” and set its target share price at €13.10. Sonaecom gained 4.9 percent to €5.19 as investors hoped that the Portuguese government will allow it’s hostile bid for Portugal Telecom, which was 0.4 percent higher to €9.79, to go forward.

The semiconductors sector was lower on the session even though both Credit Suisse and Deutsche Bank issued positive comments. STMicroelectronics dropped 0.5 percent to €13.11, while Infineon declined by 1.4 percent to €9.61.

The FTSE Eurofirst 300 was 0.1 percent higher on Monday to 1,374.02 as the car and truck manufacturing sector was again in the news. Swedish stocks were generally higher after an election there, sending Stockholm’s OMX 30 index 0.7 percent higher for the session.

As expected German truckmaker MAN made a bid for Swedish rival Scania. Scania, however, rejected the bid, worth €9.6 billion in cash and shares, in concert with major shareholders Volkswagen and Investor. Shares in MAN dropped 5.3 percent on the news, to €60.61, while Scania’s B shares were 5.9 percent higher to SKr449.50. Investor B shares added 0.7 percent to SKr154, while Volkswagen ended the session even at €65. Renault, which said that it had sold its Scania shares to MAN, dropped 1.8 percent to €88.15. Outside the MAN/Scania situation but still in the sector, DaimlerChrysler fell 0.8 percent to €38.85 after a 5.6 percent decline on Friday after it cut its operating profits forecast for the year.

Swedish companies that saw gains due to the post-election bounce included TeliaSonera, up 1.1 percent to SKr45.70 on speculation that the new center-right government, which owns 45.3 percent in the telecom operator, could sell its stake. Nordea Bank was 1.6 percent higher to SKr94.50, also on the expectation that the new government will sell its 20 percent stake for up to €5.2 billion. Likewise, air carrier SAS gained 2.2 percent to SKr93.75 on the possibility that the government will sell its 21.4 percent stake in the airline.

Not all Swedish shares were up, however. Telecommunications equipment maker Ericsson was up early but ended the session down 0.4 percent to SKr24.80. Elsewhere in the telecoms equipment sector, Finnish company Nokia continued its decline, dropping 1.1 percent to €14.97 amid continuing rumors that it will issue a profits warning soon.

The FTSE Eurofirst 300 ended the week up 1.2 percent with a gain of 0.3 percent on Friday to close at 1,373.33. Car and truck makers were the center of attention for most of the week.

DaimlerChrysler dropped 5.6 percent on Friday to €39.18, and fell 2.4 percent over the week, after it cut its prediction for full-year operating profits by €1 billion, due largely to losses in the Chrysler division in the United States. It said Chrysler’s third quarter loss alone could be as high as €1.2 billion due to a decreased demand there for sports utility vehicles.

Elsewhere in the sector, the possibility that MAN will make a bid for Scania sent shares in those companies, and in Scania’s major shareholders, higher. Volkswagen, which votes 34 percent of Scania’s shares, was 4.6 percent higher this week to €65.01. Holding company Investor, with 19 percent of Scania’s shares, was 8.1 percent higher over the week, to SKr153.00. MAN added 7.6 percent to €64.00, while Scania B shares gained 17.6 percent to SKr424.50.

Elsewhere, German tire and auto parts manufacturer Continental was up 7.4 percent to €86.00 after the announcement of a proposed regulation change in the United States called for anti-roll mechanisms in all new cars by 2009 and electronic control stability technology in all cars by 2012.

In the banking sector, rumors that Bank of America is thinking about bidding for ABN Amro sent the Dutch bank 4.6 percent higher to €22.50.