The FTSE Eurofirst 300 was up on Monday on gains in the steel sector as it seemed that there could be a bidding war for Anglo-Dutch steel maker Corus that could translate into wider consolidation in the sector. The Eurofirst was up 0.6 percent to 1,457.09.

The steel sector was not the only one that gained on bids and rumors of bids, however. Among stock exchanges, Deutsche Borse was 3.1 percent higher to €137.10 on a meager hope that Euronext’s tie-up with NYSE Group might not be as firmly settled as had been thought, making room for a bid from the German exchange operator. Euronext added 2.9 percent on the session ahead of a December 19 vote by shareholders on the merger with NYSE.

Bids rumors also helped Continental after General Capital Group would not rule out another bid after a failed attempt to buy the German tire maker earlier in the year. Continental was up 2.6 percent to €89. 69.

With prospects shaping up for a bidding war between CSN of Brazil and Tata of India, Corus added 5.4 percent to €7.80 as analysts said that while the Tata bid is more favorable from an employee point of view, Corus is obligated to act in the interests of its shareholders, who would benefit more from acceptance of the CSN bid. CSN is currently offering 515p per share, while Tata’s bid stands at 500p per share, raised on Sunday from a previous 455p bid. In Mumbai, Tata dropped 6 percent on the increased bid.

Elsewhere in the sector, ThyssenKrupp gained 1.5 percent to €32.13 after its target share price was revised upward by Goldman Sachs. Salzgitter was 1.6 percent higher to €97.22, Mittal Steel added 2.5 percent to €32.80, and Acerinox of Spain was up 2.7 percent to €21.77.

The FTSE Eurofirst 300 dropped 1.5 percent on Monday to close at 1,429.00. The declines was the Eurofirst’s furthest one-day fall in nearly six months.

Utilities were down after the announcement last week that the merger between Gaz de France and Suez was being delayed, as some hoped that Italian utility Enel might yet engineer a merger with Suez. Most analysts were skeptical of the possibility, and Enel dropped 1 percent to €7.59. Suez and Gaz de France were also lower, by 0.3 percent to €35.86 and by 0.6 percent to €32.27 respectively. Elsewhere in the sector, RWE dropped 0.6 percent to €86.05 even though it had gone as high as €90.81, an all-time high, earlier on rumors that Gazprom could be thinking about bidding.

Stock exchanges were also lower as investors took profits. Euronext dropped 3.4 percent to €92.25, while Deutsche Borse was 3.9 percent lower to €129.97.

The automobile manufacturing sector dropped on worries about the state of the US dollar. Volkswagen fell 1.6 percent to €80.01, while Peugeot dropped 2.5 percent to €46.78 and DaimlerChrysler was 2.8 percent lower to €44.25.

Tire makers were also lower, with Continental down 3.5 percent to €86.10 and Michelin dropping 4 percent to €65.20.

Equities markets in Europe were lower on Thursday on concerns about the state of the US economy and as the European Central Bank held interest rates level but issued comments strongly indicating that rates would be raised at its December meeting.

The FTSE Eurofirst 300 closed down 0.4 percent to 1,443.94, while both the Xetra Dax in Germany and the Paris index dropped 1.1 percent, to 6,223.33 and 5,310.07 respectively.

Most banks saw declines. Credit Suisse was an exception, adding 2.3 percent to SFr76.65 on a quarterly report that beat expectations. Elsewhere, UBS fell 1.1 percent to SFr74.10 and Deutsche Bank dropped 1.9 percent to €96.70. The largest bank in Norway, DnB Nor, was 2.9 percent lower to NKr83.70 after it said its pre-tax profits dropped by 1.5 percent.

The oil sector was lower as crude oil prices continue their decline. Cepsa dropped 0.5 percent to €61.85, while Statoil was 1.2 percent lower to NKr165.50

The steel sector also saw losses, with ThyssenKrupp down 1.7 percent to €29.34 and Mittal Steel dropping 3.2 percent to €32.72.

Tire manufacturer Continental was 0.6 percent higher to €87.50 on positive broker comments from Citigroup and Merrill Lynch.

Metrovacesa added 2.9 percent to €120 after it reported that net profits were up by 176 percent in the first nine months of the year. The Spanish property group’s gains were attributed to domestic growth as well as growth in its French unit.

The FTSE Eurofirst 300 added 0.4 percent to 1,449.34 on Wednesday to finally end the session with an advance after four consecutive days of losses.

Banks were mixed on the session. After early losses following the release of its third-quarter report, Deutsche Bank came back to close just 0.1 percent lower to €98.55 after going as low as €97.55 earlier in the day. The report showed that while net profits were about where they had been forecast to be, trading income was significantly lower. Elsewhere in the sector, UBS added 0.9 percent to SFr74.95 after its 5 percent decline on Tuesday.

The telecommunications sector was also mixed. Swedish telecom operator Tele2 added 12.8 percent to SKr85.75 on third-quarter earnings that were higher than had been anticipated and on an announcement that it will withdraw from some European markets and turn its attention from fixed-line operations to broadband. Greek telecom Cosmote also saw gains, adding 2.6 percent to €19.80 on an upgrade from Bear Stearns. On the other hand, Deutsche Telekom dropped 0.2 percent to €13.53 after early gains. Rumors circulated that Russian group Sistema was looking to acquire a stake in DT in trade for control of its telecoms operations.

Continental fell 0.7 percent to €87 on a third quarter report that showed earnings down almost 1 percent before interest and tax. Still, Dresdner Kleinwort reiterated its “buy” recommendation and target share price of €105 on the tire maker.

The FTSE Eurofirst 300 was up 0.2 percent over the week to 1,448.46 for its fifth week in a row of positive movement.

The automobile manufacturing sector was up on pleasing quarterly reports. Fiat added 0.3 percent over the week to €13.86, while Renault gained 1.3 percent to €90.90 and DaimlerChrysler was 4.5 percent higher to €43.27.

In a related sector, tire makers saw mixed results. While Michelin added 4 percent over the week to €64 on a quarterly report that was about where analysts expected it to be, Continental dropped 5 percent to €87.49 on negative comments from both Goldman Sachs and Deutsche Bank.

The pharmaceuticals sector was lower. Sanofi-Aventis was 2.2 percent lower for the week to €68.65 and Novo Nordisk declined 4 percent to DKr455. The sector was hurt by the announcement from AstraZeneca in the UK that trials of a new drug to treat stroke patients had not been successful.

On the other hand, the telecommunications sector saw gains during the week on quarterly results and bids rumors. The biggest winner was Telenor, which added 13.2 percent this week to NKr103 after its quarterly results brought positive comments and target share price increases from a number of brokers. France Telecom also did very well, gaining 8.8 percent to €20.56 as its third-quarter report earned it target share price increases from UBS and Citigroup.

There were gains elsewhere in the sector, with OTE of Greece being the exception. OTE dropped 0.2 percent to €19.80 on rumors that Telekom Austria could be looking to buy a share of the Greek telecom. Telekom Austria added 0.1 percent to €20.01. Telefonica gained 5.5 percent to €15.06 and Deutsche Telekom was 6 percent higher to €13.52.

Despite gains in the telecommunications sector, the FTSE Eurofirst 300 was lower on Thursday, dropping 0.2 percent to 1,452.33.

Telefonica added 1.6 percent to €14.85, while Deutsche Telekom gained 2.1 percent to €13.22 and Cosmote of Greece was 2.6 percent higher to €18.98. France Telecom was up 3.6 percent to €20.10 on a gain of 3.5 percent in underlying profits thanks to income from foreign purchases. FT was also helped by positive comments from Bear Stearns. Norwegian telecom Telenor added 7 percent to NKr96.60 on its third-quarter earnings report, which was better than had been anticipated and elicited glowing remarks from both Citigroup and Bear Stearns.

ThyssenKrupp added 2.8 percent to €30.82 on rumors that US steel maker Nucor could be ready to make a bid for the German company.

The pharmaceuticals sector was also lower, with Sanofi-Aventis dropping 0.6 percent to €69.70 on the news from Bristol-Myers Squibb reported earnings down in the third quarter. Sales of the blood-thinner Plavix, which Sanofi-Aventis and Bristol-Myers Squibb partner in, were hurt by generic drugs that serve the same purpose. Also not helping the sector was the 7 percent decline on the day by AstraZeneca in the UK after the failure of trials for an experimental stroke drug.

Tiremakers were mixed on the session, with Michelin up 0.6 percent to €63.45 on positive comments from Deutsche Bank. Meanwhile, Continental dropped 3.9 percent to €88.50 on a reduction of its earnings-per-share estimate from Morgan Stanley.

The FTSE Eurofirst 300 saw gains on Wednesday on advances in the automobile manufacturing sector. The Eurofirst added 0.3 percent to close the session at 1,454.74.

DaimlerChrysler led the way among carmakers with a gain of 4.2 percent to €43.23 on better than anticipated profits in the third quarter. While profits were down by almost 37 percent from the same quarter last year, the carmaker did report a net profit against an expectation of losses in the period. This report, plus a better than expected report from US car manufacturer General Motors, helped send Porsche 2.4 percent higher to €925.10, while Fiat and Renault each added 2.6 percent, to €14.08 and €93.25 respectively. Fiat reported huge growth in earnings in the quarter.

In an associated sector, tire makers were mixed on the session. Continental was 0.4 percent lower to €92.10 after Goldman Sachs issued negative comments. On the other hand, Michelin added 2.8 percent to €63.10 on a report showing that sales were up 4.9 percent in the quarter, about what had been expected. Michelin also announced price hikes and a plan for cutting costs. Credit Suisse reiterated its “under perform” recommendation, but UBS was more positive about the French tire manufacturer.

The semiconductors sector was lower, with STMicroelectronics down 1 percent to €13.17 even though its profits were up by 133 percent in the third quarter. Some analysts, however, expect that STM will not perform as well as the rest of the sector as 2007 begins. Infineon, meanwhile, dropped 1.8 percent to €9.54.

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 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.

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.