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.

The FTSE Eurofirst 300 was not helped on Thursday by bids rumors in the banking and automobile manufacturing sectors. The Eurofirst dropped 0.1 percent to 1,369.27 as investors continued to worry about inflation in the United States.

There were more details concerning an anticipated bid by MAN to acquire Scania. It was rumored that the German truck maker would submit a largely cash bid worth around €9.5 billion for its Swedish rival. The key still seems to be convincing top Scania shareholders Volkswagen and Investor to support the deal, which some say could be announced as soon as Monday.

Scania B shares dropped slightly on the session, by 0.4 percent to SKr154, but Volkswagen added 0.9 percent to €64.83, Investor gained 2.3 percent to SKr154, and MAN was 5.1 percent higher to €63.19.

In other mergers and acquisitions news, it was said that Netherlands bank ABN Amro could soon receive a bid from Bank of America. Such rumors have circulated before, and some analysts did not give them much credence. However, shares in ABN Amro were up 1.3 percent to €22.39. Also in the banking sector, there was speculation that a merger between SEB and Nordea might be coming up. The talk sent Nordea 3 percent higher to SKr95.25, while SEB added 3.8 percent to SKr203.50.

Shares in companies that deal in luxury goods were mixed. On the strength of a positive trading statement that had sales up 16 percent in the first five months of its fiscal year, Richemont gained 2 percent to SFr59.90. Meanwhile, Hermes International added 3 percent to €67.70 even though its first half net profits weren’t quite up to analysts expectations. Italian jeweler Bulgari, on the other hand, dropped 2.6 percent to €9.86 after its most recent guidance was not as optimistic as had been hoped.

The FTSE Eurofirst 300 added 0.2 percent on Wednesday to 1,369.99 as the vehicle manufacturing sector saw advances on the session.

Driving the sector was news that German truck manufacturer MAN is thinking of offering for Swedish rival Scania. MAN will have to convince Volkswagen, which owns a 34 percent voting share in Scania, and holding company Investor, which votes 19 percent of the Swedish company, that the merger is a good idea. Dresdner Kleinwort has said it thinks the deal makes sense.

While MAN dropped 0.9 percent to €60.12, Scania B shares added 8.3 percent to SKr422. Volkswagen gained 2 percent to €64.28 and Investor B shares were 2.7 percent higher to SKr150.5. Volvo, the second-largest truck manufacturer in the world, added 1.1 percent on the news, to SKr443.50.

In the telecommunications sector, Telecom Italia dropped 0.9 percent to €2.27 as the Italian government and unions reacted negatively to the radical restructuring plan announced by TI on Monday. Unions have reportedly begun making plans to strike.

Elsewhere in Italy, broadcaster Mediaset was 4.7 percent lower to €8.67 after it said it will likely miss its target for growth in advertising sales by 2 to 3 percent.