The FTSE Eurofirst 300 closed at its highest level in six years when it added 0.6 percent on Friday to end the session at 1,519.81.

The week saw big gains in more than one sector.  Deutsche Borse added 10.4 percent on the week to a record share price of €164.30, with one analyst saying that estimates of the stock exchange operator’s earnings growth for the year, at 10 percent, were conservative.

In the construction sector, consolidation possibilities brought big advances.  The news that holding company Artemis had purchased a 5.1 percent stake in French company Vinci sent Vinci’s shares 8.4 percent higher to €104.90.  In Spain, meanwhile, Sacyr-Vallehermoso added 10.2 percent to €48.32.

Deutsche Post gained 7.2 percent on the week to €23.98 on rumors that a private equity group was looking to buy at least part of the 30.6 percent stake owned by the German government, despite predictions of union and political opposition to such a bid.

In the Swedish banking sector, Nordea added 2.2 percent to SKr110.60 and SEB gained 7.5 percent to SKr237.00 on renewed rumors that the two banks could merge.

On the negative side, EADS dropped 2.7 percent during the week, to €24.39, after the aerospace firm issued its second profits warning in four months.  In the French energy sector, Suez was 5.8 percent lower to €38.01 after a withdrawn bid for the company, while Gaz de France dropped 6 percent to €33.73.

The FTSE Eurofirst 300 dropped 0.1 percent on the session Wednesday to close at 1,510.37.

A major factor in the 300’s decline was yet another profits warning from EADS, its second in four months. The aerospace giant was 2.8 percent lower to €25.01 after some one-time costs that were expected to be on the books in 2007 were charged in 2006 instead.

In the telecommunications sector, Telefonica dropped 0.9 percent to €16.70 on a downgrade from UBS, which reduced its recommendation from “neutral” to “reduce”. UBS cited profitability concerns due to increased competition for the Spanish telecom in both its fixed-line and mobile units. Still, UBS held its target share price for Telefonica at €15.70.

Not all the news was bad, however. ASML added 8.4 percent to €20.39 after the maker of chip manufacturing equipment said that sales would be up next year. The company also announced plans for a further share buy-back.

Deutsche Post was also higher, gaining 2.4 percent to €23.66 on rumors that private equity group Blackstone is attempting to purchase part of the 30.6 percent share of the company now held by the German state bank.

Bids rumors also helped the airlines sector as the Italian government gets ready to get rid of its 49 percent stake in Alitalia. The rumors centered on Air France-KLM because the head of that airline recently resigned from the Alitalia board, which has lead some analysts to believe that Air France is preparing a bid. Air France was 0.5 percent higher to €34.31, while Alitalia gained 2.6 percent to €1.06.

In slow trading due to the Martin Luther King Jr. holiday in the United States, the FTSE Eurofirst 300 nonetheless gained 0.6 percent on the session to close at 1,520.04.

The oil sector was higher even though crude oil prices remained low. OMV added 0.5 percent to €39.38 despite a UBS target share price downgrade from €45 to €43. Repsol gained 0.7 percent to €25.40, while Neste Oil was 2.5 percent higher to €23.07. Even bigger gains were achieved by Norsk Hydro and Statoil, proposed merger partners. Norsk was up 3.2 percent to NKr188.25, while Statoil added 4 percent to NKr162.

In the aerospace sector, EADS gained 2.7 percent to €25.75 on the news that its Eurocopter unit had won a contract to build 37 helicopters for the French police. Engine makers for airplanes, however, were mixed. MTU Aero Engines added 3.2 percent to €37.16 as Deutsche Bank reiterated its “buy” recommendation on the German manufacturer. However, Deutsche Bank reduced its recommendation for French engine maker Safran from “hold” to “sell” on earnings issues. Safran dropped 1 percent, to €17.20.

Merck added 1.8 percent to €89.04 on a raised price target and reconfirmed “overweight” rating from Lehman Brothers. The German pharmaceuticals company, which offered last week for the 16 percent of Serono that it does not yet hold, added 1.8 percent to €89.04.

The FTSE Eurofirst 300 was up significantly on Thursday, adding 1.8 percent to close the session at 1,503.93.

Banks were higher on bids rumors and broker comments. After Dresdner Kleinwort implied that there was a possibility of merger activity in the Spanish banking sector, Santander and BBVA were both higher. Santander added 1.3 percent to €14.30, while BBVA gained 1.7 percent to €18.73. Swedbank as 5.2 percent higher to SKr262.50 when UBS repeated its “buy” recommendation and upped its target share price from SKr265 to SKr300.

Stock exchanges also did well on the session. Euronext added 3.8 percent to €98.50 on approval of its plans to merge with the New York Stock Exchange. Meanwhile, Deutsche Borse gained 6.3 percent to €150.20 on talk that it could also merge with an exchange operator in the US. The Chicago Mercantile Exchange has been mentioned as a possible merger partner.

Roche was 2 percent higher to SFr230.70 on higher profits in the fourth quarter by Genentech, in which the Swiss pharmaceutical company is majority stockholder. Genentech’s fourth quarter profits were up 75 percent on demand for its cancer drugs and higher sales of a new treatment for blindness in older patients.

In the aerospace sector, EADS added 0.8 percent to €25.26 even though UBS reduced its recommendation from “neutral” to “sell” and warned that shareholders earnings could be diluted by a possible equity issue by the company.

The European equities markets were lower on Monday. The FTSE Eurofirst 300 dropped 0.1 percent to 1,484.28.

Despite the declines, there were some significant gains among individual stocks. Swiss reinsurer Converium added 8.8 percent to SFr18.65 after bids rumors and analyst opinion that it would be a good takeover target. Paris Re was said to be one possible interested party. Elsewhere among financial sectors, Swiss private bank EFG International was 0.9 percent higher to SFr42.90 after it said it will purchase PRS Group, a wealth manager based in Miami. EFG was also helped by positive comments from Bear Stearns.

In technology sectors, German software group SAP added 3.4 percent to €42.20 as ABN Amro issued a “buy” recommendation and investors expected good news when fourth-quarter sales data is released. Meanwhile, in the semiconductors sector, ST Microelectronics gained 2.8 percent to €14.53.

German industrial gases group Linde added 3.2 percent to €80.15 when it said it will sell a Polish business to a US company. Linde was also helped when Goldman Sachs European added the chems company to its conviction buy list.

Among losers on the session was EADS, which dropped 1.4 percent to €25.34. It received an order from Air Asia for 50 new planes, but the announcement came in too late to affect Monday’s trade.

The FTSE Eurofirst 300 dropped 1.1 percent to 1,472.65 during the week as trade was light as the Christmas holiday approached.

Among the losers on the week was the Spanish construction sector. Sacyr-Vallehermoso, which dropped 7.4 percent to €46 after it said it has taken a bank loan of €5.175 billion to pay for its purchase of 20 percent of oil company Repsol. JP Morgan began coverage of the Spanish construction company with a rating of “underweight” and a target share price of €36. Meanwhile, Fomento de Construcciones y Contratas dropped 7.6 percent to €76.10 when Banesto dropped its recommendation on FCC from “overweight” to “neutral”.

On the other hand, after seeing tough times due to delays in the construction of the Airbus A380, EADS added 5.7 percent during the week to €25.77 after it received new orders from Qantas and from Singapore Airlines.

In the oil sector, Norsk Hydro had a very good week, adding 20.3 percent to NKr188 after it announced that it will merge its oil and gas production business with Statoil. It will keep its aluminium operations separate. Statoil, however, dropped 5.2 percent to NKr164 despite positive reaction to the deal from most brokers when Citigroup downgraded its recommendation from “buy” to “hold”.

Swiss watch makers saw gains on exports that were up 13 percent in November compared to last year at the same time. Swatch was up 3 percent to SFr54.15, while Richemont added 4.1 percent to SFr70.50.

After gains early in the session, the FTSE Eurofirst 300 ended at 1,4479, a decline of 0.2 percent. Several sectors contributed to the decline.

Still, there were gainers on the session. In the luxury goods sector, Swatch Group added 0.8 percent to SFr54.00, while Richemont, which owns the Cartier brand of watches, gained 3 percent to SFr71.35, a record high. The advances came on hopes that Christmas spending would benefit the companies.

The French utilities sector was higher on new rumors about takeovers. Gaz de France was 1.6 percent higher to €34.23, while Suez gained 2.1 percent to €38.57 despite questions about the proposed merger between the two. Analysts saw the merger as less and less likely after news that shareholders might not vote on approval before the beginning of July. That would delay final government approval of the deal until after French presidential elections in May, with a new government seen as less likely to extend approval. Additionally, a French billionaire is said to be thinking of bidding for Suez.

Aerospace company EADS added 2.2 percent to €25.79 after Australian airline Qantas ordered eight more of the delayed Airbus A380, upping its order to twenty of the superjumbo jets.

In the oil sector, Total dropped 0.2 percent to €54.50 even though Deutsche Bank reaffirmed its “buy” recommendation on the French oil company, saying that European oil companies are currently trading at record lows.

The European equities markets were lower on the session Wednesday as investors worried about what effect the new Democratic majority in the House of Representatives in the United States would have on business. The FTSE Eurofirst 300 dropped 0.7 percent to 1,469.90. Elsewhere, the Xetra Dax in Germany was 0.2 percent lower to 6,318.43, London’s FTSE 100 fell 0.1 percent to 6,208.1, and the CAC 40 was even in Paris.

The MAN/Scania takeover story was in the news again after it seemed less likely that MAN’s attempt to purchase Scania would be successful. Part of this feeling was due to the fact that on Tuesday Investor, one of Scania’s largest shareholders, had increased its voting share in the Swedish truck-maker to 20 percent. Another factor might be the sudden resignation of Volkswagen’s chief executive. Volkswagen is also a major shareholder in Scania.

Scania’s A shares, with most of its voting rights, dropped 2.1 percent to SKr507, while its B shares fell 2.4 percent to SKr482. Investor was 0.9 percent lower to SKr162.50, while Volkswagen dropped 1.5 percent to €80. Only MAN saw gains, adding 0.2 percent to €73.

Aerospace company EADS added 3.2 percent to €21.33 on sales that were 14 percent higher in the third-quarter even though delays in the delivery of its A380 super jumbo jet have brought cancellations of some orders for the new aircraft.

The FTSE Eurofirst 300 was higher on Thursday as the MAN/Scania saga again raised share prices for all the companies involved in the story. The 300 added 0.8 percent to 1,436.34, yet another five-year high closing level.

MAN said it would again increase its offer for Scania from SKr442 to SKr475 per share and also announced that it has purchased 14 percent of Scania’s voting rights. Scania, backed by Investor, which owns 19 percent of Scania’s voting rights, rejected the new offer. Meanwhile, Scania revealed that its pre-tax earnings over the past nine months have gone up by 31 percent, while revenues are up almost 15 percent during that period. Volkswagen, which owns 34 percent of Scania’s voting rights and recently purchased 15 percent of MAN, continues to try to convince MAN and Scania to join it in a three-way deal.

All of this sent Scania’s A shares, those shares with voting rights, 10.1 percent higher to SKr490. Scania’s B shares added even more, gaining 11.1 percent to SKr476. MAN was 3.7 percent higher to €69.81, while Investor gained 2.2 percent to SKr162.50 and VW was up 0.4 percent to €70.24. Meanwhile Volvo, a domestic rival to Scania, added 2.7 percent to SKr458.50.

In the aerospace sector, EADS was 1.7 percent higher to €21.37 after the French and German governments said that they continue to support Airbus despite the airplane manufacturing unit’s continuing delay problems. German chancellor Angela Merkel added that her government was thinking about purchasing a stake in EADS.

The banking sector was higher on the session. Among Greek banks, EFG Eurobank gained 2.7 percent to €26.40, while National Bank of Greece added 3.8 percent to €34.74 on broker upgrades. In the French banking sector, Societe Generale was 4.2 percent higher to €135.10 on bids rumors.

The FTSE Eurofirst 300 was 0.7 percent higher on Tuesday to close at 1,402.38, its highest finish since early May.

The MAN/Scania story continued to unfold. Volkswagen added 1.3 percent to €68.85 after it announced that it had purchased 15.06 percent of MAN. VW said that it was a “strategic” acquisition but that it has no intention to take over the truck manufacturer, which made a bid for Swedish truck maker Scania last month. Scania, meanwhile, said that VW’s purchase put the proposed deal in a new light, but did not elaborate, while Investor, which also owns part of Scania, said it knew that VW had planned to purchase shares in MAN. The news sent Investor B shares 2 percent higher to SKr155 and Scania B shares were up 5.2 percent to SKr462. MAN, however, dropped 7.5 percent to €68.44.

Banks were higher as there were rumors of consolidation within the sector, spurred by French reports that Citigroup was looking at several European banks for possible takeover bids. BNP Paribas, which added 2.3 percent to €86, was mentioned as one of the potential targets. Other possible targets named were Societe Generale and Banco Bilbao Vizcaya Argentaria, which each added 2.4 percent to €125.90 and €18.50 respectively. Citibank had no comment on the rumors.

In the aerospace sector, EADS ended the session 4.2 percent lower to €21.71, and was down as much as 13 percent earlier in the day, after it announced yet another delay before it will be able to deliver its new A380 superjumbo jet. The airplane manufacturer also issued a profit warning. The news triggered a downgrade from Credit Suisse from “neutral” to “under perform”, while UBS lowered its recommendation from “buy” to “neutral”. Both brokers also lowered their target share prices on EADS.