Shares in Frankfurt traded narrowly yesterday. Banks were dull, but a number of old economy manufacturing stocks performed strongly.
Commerzbank and Dresdner Bank moved in opposite directions in minimal trading volumes after the two banks confirmed that they were in talks aimed at exploring links. After Friday's merger rumour gains, both stocks came in for close examination after a joint statement made it clear that there would be no rush to sign on dotted lines by either party.
Dresdner ended off €1.37 at €44.80, while Commerzbank gained 92 cents to €40.20. HypoVereinsbank shed 48 cents at €67.55. Chemicals leader BASF jumped €2.15 to €41.58 following an upgrade at Bear Stearns which moved the stock from "attractive" to "buy". More than 24 million shares in Deutsche Telekom changed hands as the 6.6 per cent tranche of shares offered by the government at €66.50 began trading. Telekom finished €2.18 lower at €65.88.
E.On, the newly combined Veba and Viag, improved 27 cents to €57.27. Dax newcomer Infineon Technologies shed 50 cents to €82.50.
The Xetra DAX index was up 67.40 at 7,198.80.
Paris ended higher, tracking a timid recovery in US shares, with technology-related stocks seeing the best of the gains among bluechips. The CAC-40 index added 48.90 to 6,505.16.
The mega-merger between Vivendi, Canal Plus and Canada's Seagram remained the centre of attention. An all-stock bid of about $33 billion for Seagram is expected, with an announcement from Vivendi and Canal Plus this morning. Shares in Vivendi had an erratic day, ending 2.6 per cent lower at €96.45, while Canal Plus gained 1 per cent to €203.
Shares in Amsterdam-based telecoms company Equant fell again as hopes for a takeover faded. Industry sources said on Friday that Equant and Global Crossing had ended merger talks largely because of a disagreement over price. Equant closed down 1.1 per cent at €46.50.
Total Fina Elf, which joined the Dow Jones Global Titans index yesterday, rose 1.3 per cent to €163.10.
Amsterdam saw further steep losses among financials and the AEX index ended off 5.26 at 677.19.
ABN-Amro came off 67 cents at €24.90 and Aegon lost €1.27 to €39.03. ING, which announced over the weekend that it had abandoned talks to acquire part of US insurance giant Aetna, fell €1.25 to €65.75.
Philips added €1 at €65.74 amid speculation that the takeover of Seagram, in which Philips has an 11 per cent stake, was close to agreement.
