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.

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.