The FTSE Eurofirst 300 ended the day at a five-year high as it closed 0.6 percent higher to 1,480.76. The gains came as analysts at Standard & Poor’s said that the active year in mergers and acquisitions could be topped by next year’s activity.

The airlines sector saw gains as investors looked for more consolidation in the sector after the recent record amount paid for the takeover of Qantas of Australia. Iberia was up 1.1 percent to €2.81, while Lufthansa added 1.3 percent to €20.87 and SAS gained 1.4 percent to SKr108.00.

In the pharmaceuticals sector, Novo Nordisk added 2.5 percent to DKr468 on an upgrade from “hold” to “buy” from Citigroup. The broker also raised Novo’s target share price from DKr445 to DKr525, citing the positioning of the drug maker and healthcare group to capture more business as more and more people become diabetic. It also said that Novo’s growth potential from its anti-obesity drug had not yet been priced into to its share value.

Also in the healthcare sector, Nestle and Novartis both benefited from Nestle’s agreement to purchase Novartis’ medical nutrition unit for $2.5 billion. The deal was said to position Nestle second only to Numico in providing special foods for patients. Nestle added 1.5 percent on the news, to SFr436, while Novartis gained 1.8 percent to SFr71.35 and Numico was up 2.9 percent to €40.13.

In the automobile manufacturing sector, Porsche was 2 percent higher to €955.00 when HVB increased its target share price from €995 to €1,104. Meanwhile, Volkswagen was 0.2 percent lower to €84.00.

In Europe on Tuesday the FTSE Eurofirst 300 added 1 percent to 1,391.10 on gains in several sectors. Commodities prices that continue to rise have helped the oil and mining sectors, while strong earnings reports from other sectors have also contributed to the gains.

In the steel sector, Arcelor added 3.3 percent to €33.69 after its chief executive said that the company is worth much more than a proposed bid from rival Mittal Steel. Elsewhere, ThyssenKrupp gained 3.3 percent as well, to €26.98, and Salzgitter was up 5.1 percent to €66.10.

Among oil-related companies, oilfield services company Saipem added 2.8 percent to €20.45. Repsol, however, lost 0.6 percent to €23.53 after Bolivia took control of foreign-owned gas fields in that country. Repsol is the most heavily exposed European oil company in South America.

Utilities were up as well, with Suez up 3.5 percent to €32.29 and Gaz de France 1.5 percent higher to €66.92 after it was reported over the weekend that Suez expects twice the earlier estimated amount in annual synergies after the two complete their merger.

In the banking sector, Credit Suisse gained 1.3 percent to SFr78.90 after it said that first-quarter net income had risen by 36 percent, well above predictions. Its banking division saw net income increase by 44 percent. The report spurred WestLB to upgrade its shares to “add”.

Dutch food group Numico also issued a positive first-quarter report, with sales up 13.6 percent, in double digits in all three main divisions, and profit margins up to 19.2 percent. Numico gained 5.3 percent on the day to €37.82.

European equities markets were up in mid-afternoon trade on Friday, with the FTSE Eurofirst up 0.2 percent to 1,358.08. Additionally, Germany’s Xetra Dax was up 0.1 percent to 5,861.5 and the CAC 40 in Paris gained 0.4 perent to 5,062.2

Companies related to food production and sales were mixed on the day. Danone was up 2 percent to €96.95 on an upgrade from “equalweight” to “overweight” from Morgan Stanley coupled with a new share price target of €108. Earnings growth for the company was predicted to reach the mid-teens in the next two years. Food retailer Ahold, the fourth largest in the world, was also up, by 1.3 percent to €6.99 as it said it is thinking of making significant acquisitions for the first time since it nearly went bankrupt three years ago. Numico, however, lost 3.1 percent to €35.99 on a downgrade to “in-line” by Goldman Sachs on the basis of its cautious outlook statement.

In the related brewing sector, Inbev was down 3.1 percent to €36.54 despite full year earnings reports which showed operating profits coming in slightly above predictions at €3.33 billion, with growth at 15.3 percent.

The utilities sector was still seeing bid rumours. Endsea, a bid target for Eon, was up 0.6 percent to €26.24. In new rumors, Gaz de France and Suez are said to be thinking of forming an alliance to repel a bid for Suez by Enel of Italy. Gaz de France gained 2.6 percent to €29.35 and Suez was up 4.1 percent to €33.32, while Enel dropped 0.7 percent to €7.12.

In the pharmaceuticals sector, Sanofi Aventis gained 0.5 percent to €72.45 despite announcing that the launch of its anti-obesity treatement in the United States could be put off until later in the year. The drug company’s full-year report showed that net profits were up by 25.7 percent to €6.34 billion, and it said that its earnings should grow by about 10 percent this year.

In Europe on Thursday the equities markets fell, with the FTSE Eurofirst 300 declining by 0.2 percent to 1,355.46. Banking and retail were up on the day, but utilities were mixed and foods were down.

Among bankers DnB Nor, Norway’s largest bank, was up 0.9 percent to NKr81.50 after a strong performance in its brokerages led to a 28 percent leap in pre-tax profits in the fourth quarter.

German retailer Metro was up 4 percent to €43.90 on reports that German business confidence was at a 14-year high. Elsewhere in the retail sector, France’s Carrefour turned a comment by Deutsche Bank that its stock was undervalued into a gain of 3.1 percent to €40.86.

In the utilities sector, bid rumours continued but not to the huge benefit of companies in the sector as earlier in the week. Gas Natural was up 2.6 percent to €24.90 when Spanish construction company FCC said it would think about joining in a bid for Endsea. While Gas Natural gained on the talk, FCC dropped 0.4 percent to €57.10 and Endsea declined by 0.7 percent to €28.06. French utility Suez, gained 7 percent early in the day on rumors that it might be a takeover target by Enel, but by the end of the day Suez was only up 0.3 percent to €32. Elsewhere in the sector, EDF was up 1.5 percent to €42.47 on an announcement that its net profits had doubled, while RWE dropped 2.7 percent to €72.60 after issuing a statement saying that operating profits in 2006 would likely only grow by 5 to 10 percent.

Nestle was down by 3.3 percent to SFr386.50 despite a report of net profits in line with expectations and up 20.7 percent from 2004s figures. One analysts said that the profits report showed Nestle’s strength and that share prices do not reflect that strength, while Nestle’s chief executive put down reports that the company could be interested in bidding for Danone or Numico. Numico, meanwhile, dropped 1.7 percent to €37.13 as it announced disappointing results on fourth quarter sales, especially in baby food.