The FTSE Eurofirst 300 reached yet another in its continuing series of closing highs on Monday, adding 0.2 percent to 1,443.50.
The oil sector was instrumental in the gains as Repsol YPF added 4.6 percent to €27.35 on rumors that Spanish builder Sacyr Vallehermoso is looking to acquire 3 percent of the company. Sacyr added 1.7 percent to €41.22 on the talk even though Deutsche Bank issued a downgrade from “hold” to “sell”. Other oil companies were also higher, with OMV up 1.4 percent to €42.29 and Statoil 3.6 percent higher to NKr166.75.
The Italian banking sector was mixed as Banca Popolare Italiana and Banca Popolare di Verona e Novara agreed to a merger deal worth €8.2 billion, which will create the third-largest retail bank in Italy. BPI added 3.6 percent on the news, to €10.76, but Verona was 7.5 percent lower to €21.09.
In the ongoing saga of the proposed MAN/Scania merger, meanwhile, MAN was down 2.6 percent and Investor - Scania’s second-largest shareolder - was flat at SKr159.50, while Volkswagen added 0.1 percent to €70.30 and Scania B shares were 0.9 percent higher to SKr485.50. Over the weekend VW again signaled support for the deal.
European supermarkets saw losses on the session. Delhaize was 0.9 percent lower to €63.50 and Ahold dropped 1.7 percent to €8.13 on reports that the two had abandoned merger talks, but neither company would comment on the speculation.
Philips Electronics declined 1.1 percent to €27.61 due to third quarter core profits that were not up to expected levels. West LB reiterated its “buy” recommendation, saying that it believes that shares in Philips are undervalued.