The FTSE Eurofirst 300 added 1.3 percent over the week to close at 1,489.47 on Friday, for a gain of 0.23 percent on the day.

Car and truck makers did will over the week after Volkswagen (OTC: VLKAY) once again raised its share in Swedish truck maker Scandia (OMX: SCV B), this time to 35.3 percent of voting rights and 20 percent of the company’s total share capital. That means that Volkswagen and MAN (FWB: EDF1), which holds 14.8 percent of the Swedish truck maker, together own a bit over 50 percent of voting rights in Scania. The new acquisition by VW is seen as a step toward consolidation in the European truck making sector. VW, which is also the largest shareholder in MAN, added 10.5 percent on the week to €103.5, while MAN gained 8.7 percent to €87.73. Scania was 2.9 percent higher to SKr534.

Irish banks also saw substantial gains during the week. Bank of Ireland (LSE: BKIR; NYSE: IRE; ISEQ: BKIR) gained 1.9 percent to €17.38 and Allied Irish Banks ( LSE: ALBK; NYSE: AIB; FWB: AIB; ISEQ: ALBK) added 7.9 percent to €23.40. Both were helped by an announcement from Anglo Irish Bank (LSE: ANGL; FWB: CKL; ISEQ: ANGL) that it expects its earnings in the first half of the year to be nearly 40 percent higher than last year’s results.

Aerospace company EADS (FWB: EAD; Euronext: EAD) dropped 4.4 percent during the week to €22.60. EADS announced on Friday that losses at its Airbus division sent full-year operating profits for the group down by 86 percent and said it expects losses this year as well.

The FTSE Eurofirst 300 added 1.6 percent this week to close at 1,537.65 as earnings reports continued to be issued and mergers news was in focus.

The energy sector reacted to Gas Natural’s withdrawal from the bidding for Endsea, leaving Eon with the only offer on the table for the Spanish energy company. Gas Natural dropped 0.9 percent on the week to €30.85 while Eon, which was due to deliver its sealed bid to the Spanish stock market regulator on Friday, added 10.9 percent to €109.43. Endsea was 0.9 percent higher to €39.04 and Acciona, the Spanish builder which owns a 21 percent stake in Endsea gained 1 percent to €155.

The steel sector was also affected by bids news. Corus added 7.9 percent to €9.13 as it was revealed that Tata Steel had won the bidding for the Anglo-Dutch steel maker. Hopes that there would be further consolidation in the sector sent ThyssenKrupp and Arcelor Mittal 3.8 percent higher each, to €36.54 and €36.43 respectively.

Truck manufacturers were higher during the week as well. Volvo added 3.2 percent to SKr513 even after it failed to meet projections for the fourth quarter when it upped its outlook and announced an extraordinary pay-out. Scania was 9 percent higher to SKr510.

Airlines were mostly up this week, the exception being Alitalia, which dropped 0.2 percent to €1.07 in a week when it received from two private equity groups but Air France-KLM said it was not interested in making a bid. Lufthansa added 3.5 percent to €21.90 on an upgrade from UBS, while Iberia gained 6.3 percent to €3.19. Air France, which also received a UBS upgrade, was 10.6 percent higher to €35.59.

In Europe on Monday the FTSE Eurofirst 300 added 0.3 percent to 1,517.07 on Monday despite declines in the telecommunications sector.

Telecoms were lower after Deutsche Telekom issued its second profits warning in six months, citing competition and currency issues. Citigroup lowered its recommendation on the German telecom from “hold” to “sell” and Deutsche Telekon dropped 4 percent to €13.60. Elsewhere in the sector, France Telecom fell 0.9 percent to €21.18, while Telecom Italia and Swisscom were each 1.5 percent lower, to €2.27 and SFr471.50 respectively.

Car and truck manufacturers was gains on the session. On rumors that it could be a target for Volvo, MAN added 2.6 percent to €78.86. Volvo was 1 percent higher on the talk, to SKr502, while Scania, the recent target of MAN’s failed hostile bid, was up 3.5 percent to SKr485. Fiat gained 2.8 percent to €16.67 on a target share price hike from JP Morgan.

The airline sector was up on merger hopes and on upgrades from UBS, which raised its recommendation on Lufthansa and Iberia from “neutral” to “buy” and hiked target share prices for both Ryanair and Air France-KLM. Lufthansa was up 1.1 percent to €21.38, Ryanair gained 1.3 percent to €11.04, Air France was 1.5 percent higher to €32.67, and Iberia gained 3.3 percent to €3.10. Meanwhile, Alitalia added 1.9 percent to €1.10.

In Europe on Tuesday the FTSE Eurofirst 300 was nearly steady, losing only 0.21 points to end the session at 1,513.31 as big losses for Alcatel-Lucent balanced gains in other sectors.

Alcatel-Lucent dropped 8.5 percent to €10.02 after having lost as much as 12 percent in earlier trade. The manufacturer of telecommunications equipment issued a profits and revenues warning for the fourth quarter. The company said adjusted revenues will be around €4.4 billion, significantly lower than last year’s €5.25 billion. Operating revenues, which were expected to show a profit of €539 million will, the company said, manage to just break even.

The automobile and truck manufacturing sector saw gains when German truck maker MAN said it will abandon its hostile takeover bid for Scania and instead try to negotiate a friendly merger. Scania’s B shares added 1.1 percent to SKr645 after dropping as low as SKr441 earlier in the session, while MAN gained 2.3 percent to €75.79. Volkswagen, which is the largest shareholder in both Scania and MAN, was 0.4 percent higher to €84.67.

In the media sector, Dutch television producer Endemol ended the session 1.6 percent higher to €20.65. Its share price was as high as €22.74 after it was reported that Rupert Murdoch’s News Corp. wanted to purchase the 75 percent stake of Endemol that Telefonica owns, but pulled back to its closing level after News Corp denied the rumors.

Luxury goods makers were mixed. Despite reporting a 10 percent gain in sales in the quarter, Richemont dropped 3.6 percent to SFr70. Swatch, on the other hand added 1.8 percent to SFr292.75.

The FTSE Eurofirst 300 was 2 percent lower over the week, closing at 1,421.17 on Friday as a strong euro hurt several sectors. One analysis said that corporate profits could be down by up to 4.4 percent next year if the euro continues to strengthen. New data showing that the US economy is slowing down also hurt European equities.

In the automobile and transport equipment sector, most stocks dropped. The exception was MAN, which added 1.1 percent to €70.71 as rumors circulated that Scania could counter bid for the German truck maker while rejecting its overtures. Scania was 0.4 percent lower to SKr473. Elsewhere among carmakers, BMW fell 3.8 percent over the week to €41.20, DaimlerChrysler dropped 4.7 percent to ¥43.41, and Renault was 5.1 percent lower to €88.35.

The pharmaceuticals sector was lower as well. Bayer only dropped 0.4 percent to €38.83, but Roche fell 3.8 percent to SFr212.3 during the week.

Cell phone maker Nokia was 6.8 percent lower over the week to €14.91 on a reduced outlook on profits and negative comments from Dresdner Kleinwort, which said that Nokia’s net income could decline as much as 20 percent in 2007. On the other hand, positive comments from Morgan Stanley helped airline Lufthansa add 1.4 percent over the week to €19.49.

The FTSE Eurofirst 300 came back from a series of losing sessions to gain 1.3 percent on Wednesday, closing at 1,443.38. It was the best percentage gain for the 300 in two months.

The car and truck manufacturing sector was instrumental in the day’s gains. Even though Porsche said its share of Volkswagen was steady at 27.4 percent, rumors - which were denied by Porsche - persisted that it is getting ready to make a bid for VW, possibly in conjunction with private equity. Porsche added 3.8 percent to €887.39, while VW gained 4.3 percent to €85.50 as almost 16 million shares changed hands. VW has added 168 percent to its share value since April 2005.

Meanwhile, German truck maker MAN was 5.2 percent higher, to €70.79 on rumors that Scania, which MAN is trying to buy, could offer a counter bid. Scania dropped 0.9 percent to SKr465. Elsewhere in the sector, DaimlerChrysler added 1 percent to €44.40, Peugeot was 1.8 percent higher to €48.01, and Fiat gained 3.1 percent to €14.31.

In the utilities sector, Iberdrola added 4.4 percent to €33.48 after its bid for Scottish Power led Merrill Lynch to reconfirm its “buy” recommendation. On the other hand, WestLB cut its targets share price for Iberdrola to €34, citing its belief that the Spanish utility is paying too much for Scottish Power.

With an automobile manufacturing sector that fared well early in the week but saw declines later and crude oil prices that fell dramatically at the end of the week, the FTSE Eurofirst 300 was down 0.1 percent over the week to 1,462.05.

The oil sector was down on both the day Friday and over the week as a whole. The worst performers were Statoil, which fell 4.8 percent on Friday and 3.3 percent during the week to NKr167.75 and Norsk Hydro, with declines of 5 percent on the day and 3.8 percent on the week to NKr152.

Car and truck makers were mixed on the week. Volkswagen was up and Porsche declined on rumors that Porsche is getting ready to bid for VW. Porsche, which already owns 27.4 percent of VW, said it wants to increase its holding to 29.9 percent; if it acquires 30 percent, it will be forced to submit a bid. VW added 3.9 percent to €83.09 during the week, while Porsche was 1.6 percent lower to €900.

VW, with large stakes in both MAN and Scania, is also a major player in the efforts of German truck maker MAN to acquire Swedish rival Scania. VW favors the merger while Investor, Scania’s other major shareholder, and Scania’s unionized workers, are against the merger. With rumors circulating this week that Scania is preparing a counter bid, MAN added 2.9 percent over the week to €73, while Scania’s B shares were 2.6 percent lower to SKr475. Investor ended the week at SKr155.50.

The semiconductors sector was higher on the week on strong quarterly reports and ahead of the release of a new iteration of Microsoft’s Windows. STMicroelectronics was up 3.5 percent to €14.11, while Infineon added 5.2 percent to €9.78 and ASML gained 6.5 percent to €19.30.

The FTSE Eurofirst 300 ended the session Thursday 0.2 percent higher to 1,473.84, its highest close in five and a half years, buoyed by gains in the automobile manufacturing sector.

Stock exchanges were mixed on the session, with Euronext 1.1 percent higher to €85.95 on a third quarter report that was about as expected, while Deutsche Borse fell 0.7 percent to €124.06 after dropping plans to merge with Euronext.

In the semiconductors sector, Infineon dropped 2.3 percent to €9.57 after warning of lower sales and earnings in the current quarter, after its fourth quarter operating profits were lower than had been hoped after a key customer went bankrupt.

In the cars and trucks sector, MAN reasserted its hostile bid for Scania, despite repeated rejections. Volkswagen, the largest shareholder in both companies, will hold a board meeting later in the day to consider the offer. There were also rumors that Scania would submit a counter bid for MAN. Porsche, meanwhile, was said to be thinking of bidding for Volkswagen after having already said it would increase its holding in VW.

Everyone involved in this M&A dance benefited, with the exception of Scania, whose B shares dropped 2 percent to SKr465.50. Volkswagen added 1.5 percent to €85.50, while MAN gained 3.6 percent to €73.64 and Porsche was 4.7 percent higher to €921. There were also gains elsewhere in the sector, as Renault was up 0.9 percent to €97.85, DaimlerChrysler added 1.9 percent to €48.41, and Peugeot gained 3.4 percent to €49.77.

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 reached yet another in its continuing series of closing highs on Monday, adding 0.2 percent to 1,443.50.

The oil sector was instrumental in the gains as Repsol YPF added 4.6 percent to €27.35 on rumors that Spanish builder Sacyr Vallehermoso is looking to acquire 3 percent of the company. Sacyr added 1.7 percent to €41.22 on the talk even though Deutsche Bank issued a downgrade from “hold” to “sell”. Other oil companies were also higher, with OMV up 1.4 percent to €42.29 and Statoil 3.6 percent higher to NKr166.75.

The Italian banking sector was mixed as Banca Popolare Italiana and Banca Popolare di Verona e Novara agreed to a merger deal worth €8.2 billion, which will create the third-largest retail bank in Italy. BPI added 3.6 percent on the news, to €10.76, but Verona was 7.5 percent lower to €21.09.

In the ongoing saga of the proposed MAN/Scania merger, meanwhile, MAN was down 2.6 percent and Investor - Scania’s second-largest shareolder - was flat at SKr159.50, while Volkswagen added 0.1 percent to €70.30 and Scania B shares were 0.9 percent higher to SKr485.50. Over the weekend VW again signaled support for the deal.

European supermarkets saw losses on the session. Delhaize was 0.9 percent lower to €63.50 and Ahold dropped 1.7 percent to €8.13 on reports that the two had abandoned merger talks, but neither company would comment on the speculation.

Philips Electronics declined 1.1 percent to €27.61 due to third quarter core profits that were not up to expected levels. West LB reiterated its “buy” recommendation, saying that it believes that shares in Philips are undervalued.