Mergers and acquisitions again took center stage as European equities markets dropped on Wednesday, with the FTSE Eurofirst 300 down to its lowest close in three weeks, dropping 0.8 percent to 1,333.17.

Utilities were still in the midst of a round of bids and counter bids. The board of Enel met to consider how to react to a planned merger between Suez and Gaz de France, including mulling a possible bid for Suez. Suez gained 3.2 percent on the day to €34.07, while Enel lost 0.7 percent to €6.853 and Gaz de France dropped 0.4 percent to €29.29.

Elsewhere, Dutch media group VNU agreed to be purchased by a group of private equity firms, although one asset management company holding around 2 percent of VNU’s shares said it would reject the bid and asked VNU’s board to let shareholders vote on a new sale process. Other shareholders were unlikely to support the request. VNU closed slightly lower at €28.75.

In the pharmaceuticals sector, up 1.8 percent as a whole, Sanofi-Aventis and Novartis were both higher after Morgan Stanley called stocks in the sector “very cheap”. Sanofi was up 2.5 percent to €72.65, while Novartis advanced by 1.1 percent to €71.35.

Hotel group Accor, meanwhile, dropped 7.4 percent to €47.47 after investors were disappointed by a reduced dividend and no clear guidance to where the company is headed.

Equities markets in Europe saw advances on Monday on the strength of gains the oil sector as the FTSE Eurofirst gained 0.2 percent to 1,345.92, a new four and a half year high.

The oil sector was up on higher crude oil prices. Statoil gained 3.5 percent to €178. Meanwhile Saipem, the largest oil field services company in Europe, was up 3.1 percent to €16.04.

The banking sector was also up, with more takeover talk in Italian banking. Mediobanca, rumored to be a target despite an agreement that gives core shareholders 54 percent of the bank, was up 4.2 percent to a record high share prices of €17.60. Capitalia, also seen as a potential takeover target, gained 2.8 percent to €6.325. Meanwhile, EFG Eurobank was up 4 percent to €33.06 as JP Morgan raised its price target from €40 to €44 on the strength of the bank’s expansion in southeastern and central Europe.

Utilities were up on the day as well, with Electricite de France gaining 2.2 percent to €41.56 on consolidation talk. Eon gained 0.6 percent to €93.44 after its chief executive said he expects that three dominant players will emerge in the sector.

The pharmaceuticals sector was mixed. Schering was up 3.3 percent to €58.39 on an announcement that its fourth-quarter operating profits were up 30 percent, slightly higher than forecasts. It also said that it will buy the property and equipment used by its US partner, Chiron, to produce the drug Betaferon (Betaseron in the US), which is expected to be approved for the treatment of early-stage multiple sclerosis before the end of the third quarter. Shares in Novartis, which has not yet finalized its planned purchase of Chiron, was up 0.1 percent to SFr71.50.

Elsewhere in the sector, Serono dropped 2.2 percent to SFr959 as concern grew about competition between its multiple sclerosis drug Rebif with Betaferon. Sanofi-Aventis dropped 3 percent to €71.70 after regulators in the United States delayed final approval of Acomplia as a weight management treatment and rejected the drug as a stop-smoking aid.

In Europe on Monday, the FTSE Eurofirst 300 finished the day up 0.1 percent at 1,321.65, largely on activity within the banking sector.

BNP Paribas initiated a takeover bid for Banca Nazionale del Lavoro, Italy’s sixth largest bank. The bid, worth €9 billion, spurred large gains in the Italian banking sector. Capitalia was up 7.6 percent to €5.74. Banca Popolare di Milano gained 6.9 percent to €10.57. Mediobanca advanced 4 percent to €16.24. Banca Intesa was up 3.3 percent to €4.90. BNL, however, fell 2.4 percent to €2.89.

In other fallout from the announcement from BNP, BBVA lost 1.2 percent to €16.22. BBVA will sell its 14.9 percent stake in BNL as part of the deal. Elsewhere in the banking sector, Societe Generale gained 0.5 percent on the day to €109.90, but Credit Agricole fell 0.1 percent to €29.05.

Takeover rumors also affected the oil sector as Repsol gained 4.2 percent to €23.18 on reports out of Spain that BP and Italian oil company Eni are thinking about entering takeover bids for Repsol, which is seen as vulnerable after the expiration of Spanish government protection of the company from hostile takeover. Eni gained 0.8 percent on the day to €24.60. Elsewhere in the oil sector, Austrian company OMV gained 6.4 percent, while Norwegian firms Statoil and Norsk Hydro were both up. Statoil gained 3.4 percent to NKr184.00 while Norsk Hydro advanced 1.9 percent to NKr815.00.

In the biotech sector, Swiss company Serono posted disappointing profits and revenues growth in the fourth quarter, opening it to takeover speculation and sending the company’s shares down 0.1 percent on the day to SFr958.50. GlaxoSmithKline has been seen as a likely party to attempt a takeover, but it has been reported to be unwilling to pay what analysts say would be an adequate per-share price. Other possible bidders for Serono are thought to be Novartis and Johnson & Johnson.