An uncertain response to solid results from Deutsche Telekom sent Frankfurt on a roller-coaster ride. Telekom initially ran into profit-taking, falling 4 per cent after preliminary 1998 results in line with expectations. But the shares picked up to close #2.40 or 6.9 per cent higher at a record #37.30, helped by an upgrade from Commerzbank.
The early weakness in Telekom permeated through to the Xetra DAX, which spent much of the morning in negative territory before early strength on Wall Street sent the market higher. By the close, the index had again run out of steam. It ended 38.40 down at 5,038.45.
Mannesmann put on #2.60 to #119.20 as the German group and its Italian partner Olivetti lifted their offer for the US-based Cellular Communications International to $80 (#69) a share after a previous bid flopped. Telekom competitor Mobilcom shot up #41.50 to #431.
Industrial group Thyssen jumped #7.50 to #151 as bargain-hunters sought out the stock after its recent falls.
Lufthansa gained 26 cents to #19.40 on expectations of a positive 1999 outlook from the group after the market closed.
Industrial giant DaimlerChrysler gave only a muted response to news of the BAe-Marconi deal, which appeared to have scuppered any hopes of a British merger for Dasa. By the close, DaimlerChrysler was #1.25 lower at #90.
Paris reversed a three-day rally, dipping 35.69 to 4,115.99 on the CAC40 index after some fairly heavy selling of defence leaders Thomson-CSF and Alcatel.
CSF was active on news British Aerospace had won the bidding for Marconi Electronics. Its shares, which had risen strongly on hopes that the French group would clinch a deal, ended #1.72 lower at #33 after touching a session low of #31.30.
Elsewhere with the defence sectors, Alcatel lost #8.95 at #96.35 but Lagardere, which is merging its Matra defence unit with Aerospatiale, gained #2.24 at #36.75.
Banks stayed in demand, buoyed by sector consolidation speculation. BNP added a further 55 cents at #77.15 and Societe Generale gained #6 at #155.
Amsterdam ended 4.67 higher at 548.88 on the AEX index, thanks to a number of solid gains among the big Dutch cyclicals. Unilever added 2.8 per cent and Akzo Nobel advanced 4.9 per cent.
Zurich ended with the SMI index registering a loss of 40.4 at 7,207.7.
Milan ran into some profit-taking late in the day and the Mibtel index ended off 432 at 23,846.
Olivetti closed down 13.3 cents or 4.2 per cent at #3.061. As well as news of a raised offer for Cellular Communications of the US, Olivetti was hit by a downgrade by Warburg Dillon Read.
