News and rumors involving bids activity lifted the FTSE Eurofirst 300 by 1.9 percent on Monday to 1,314.30, almost 7 percent higher than its low for the year, reached in June.

The forestry and paper sector was helped by Oji Paper’s move to acquire Hokuetsu Paper Mills, as investors looked for signs of similar consolidation within the sector in Europe. UPM Kymmene gained 1.7 percent to €17.60, while Stora Enso added 2.2 percent to €11.73 and SCA was up 3.4 percent to SKr316.

In the telecommunications sector, France Telecom added 2.1 percent to €16.75 on the announcement that it would sell its stake, totaling 54 percent, in directories publisher PagesJaunes to a US private equity house. Shares in PagesJaunes gained 0.1 percent to €22.06.

Phillips Electronics was up 6.6 percent to €25.15 amid speculation that three separate private equity groups would bind for its semiconductors unit. ABN Amro repeated its “buy” rating on Phillips as well as reconfirming its target share price of €28.40.

Rumors of a merger between Italian utilities ASM Brescia and AEM Milano resulted in gains of 3.4 percent to €2.99 and 1.7 percent to €1.93 respectively. The chairmen of both companies confirmed that they were ready to engage in talks.

In the automobile manufacturing sector, Peugeot overcame early losses to end the day up 0.1 percent to €45.30 even though Faurecia, the parts maker in which Peugeot owns a 71 percent, said it saw operating margins go down in the first half. Faurecia fell 7.6 percent to €41.39. Fiat added 1.1 percent to €10.71 on the news that it would enter into a consumer financing venture with Credit Agricole.

The FTSE Eurofirst 300 ended the week with a gain of 1.7 percent, to 1,276.32, but over the week it dropped 2.8 percent. Miners, oil companies, and other sectors connected to resources were responsible for much of the declines on the week.

The pharmaceuticals sector was mixed. Irish drugmaker Elan lost almost 17 percent during the week to €12.38 after the US Food and Drug Administration allowed them to return their multiple sclerosis drug Tysabri to the shelves, but only as a treatment of last resort after its sales were stopped earlier due to the deaths of some patients taking the drug. With the reintroduction, Elan said that it would increase the price of the drug. Drug companies with rival MS treatments saw gains, however. Schering added 1 percent to €86.25, while Serono was up 3.8 percent to SFr802. Also gaining during the week was Roche, which was up 1.5 percent to SFr194.20 after it announced encouraging test results on three different cancer drugs.

Telecommunications companies were mixed as well. Telecom Italia gained 0.9 percent to €2.24, Belgacom added 1 percent to €25.90, and Telefonica advanced by 1.4 percent to €13. But France Telecom declined by 2.3 percent to €17.29 after it said it would sell its 54 percent share of directory publisher PagesJaunes, which was up 2.5 percent this week to €22.89.

In oil related sectors, Austrian oil prodcuer OMV dropped 15.6 percent during the week to €39.75. Atlas Copco, the Swedish engineering company that works with oil producers, added 4.4 percent to SKr165.50 on Friday, but still declined by 10 percent over the week.

In Europe on Wednesday the equities markets saw advances, with the FTSE Eurofirst 300 up 0.7 percent to 1,289.1 and Germany’s Xetra Dax adding 0.8 percent to 5,543.93. The Dax was helped by an announcement by Deutsche Borse that it will make it easier for companies to list on the Dax. The change means that that companies will not need to be registered in Germany to list there, but only must be headquartered there.

European aerospace company EADS has said it would pursue a listing on the Dax, sending its shares up 4.1 percent to €26.75. EADS has headquarters in both Paris and Munich.

Utilities were up on the day, largely on mergers and acquisitions issues. In the utilities sector, Suez, working on a merger with Gaz de France, was up 3.3 percent to €30.15 after Enel of Italy said that it was still interested in pursuing a deal with Suez. Enel gained 0.9 percent to €7.12, while Gaz de France added 0.2 percent to €26.43.

Endsea, the Spanish electrical group, was up 2 percent to €26.20 after Credit Suisse raised its target share price from €28.50 to €29.50. Gas Natural, a Spanish rival, and Eon of German are currently in a bidding battle over Endsea.

In the telecommunications sector, France Telecom said it will sell its 54 percent share in PagesJaunes, a directory publisher. The sale will raise up to €3.4 billion for FT, which is rumored to be in talks, joined by private equity group Carlyle, to purchase Austrian mobile company One. Other rumors have FT interested in purchasing a stake in Belgium’s Mobistar. All the talk sent PagesJaunes 1.1 percent higher to €22.77, while France Telecom added 2.3 percent to €17.60.