Schneider returned to trading after Monday's enforced suspension only to slide nearly 12 per cent amid a fusillade of catcalls from the broking community.
The earnings dilution created by Schneider's #6.7 billion takeover of rival electrical equipment group Legrand prompted downgrades from Morgan Stanley Dean Witter, Deutsche Bank, HSBC and SG Securities.
They left the shares almost scarred for life, tumbling to #63.10 before closing off #9 at #67, where they trail last September's 12month peaks by 22 per cent. Volume was some of the heaviest ever seen at 7.7 million shares.
Legrand, which stood at #155 last March, added 2.3 per cent at #227.2.
Few analysts doubted the strategic wisdom of the deal but most blanched at an all share financial structure that leaves Schneider facing significant earnings dilution for at least three years.
Some brokers saw the deal as effectively removing Schneider's own takeover premium. Deutsche Bank, which predicts a "strongly negative" impact on return on capital, has cut its target price to a range of #65 to #70.
German steel leader Thyssen Krupp remained in demand, adding a further 1.5 per cent at #18.98 following a results-driven upgrade. Deutsche Bank has lifted from "market perform" to "buy" and set a target price of #25.
Retailers were mixed. Germany's Karstadt Quelle, down some 10 per cent last week, rallied as investors digested the weekend news that the group planned significant streamlining. The shares regained 4.8 per cent at #35.79.
Disappointing Christmas sales at UK parent Kingfisher sent French DIY specialist Castorama Dubois down 8.7 per cent at #260.
Supermarkets giant Carrefour, hit lately by widespread downgrades, fell 0.8 per cent to #60, a fresh 12-month low.
TMTs continued to slide against a background of credit downgrades for telecoms and rising tensions ahead of US technology results. The FTSE Eurotop 300 IT sector was off 4.4 per cent, telecoms about 3 per cent and media stocks 2 per cent.
On Monday, Standard & Poors downgraded KPN, the most fragile of blue chip European telecoms, from A- to BBB. Yesterday it was the turn of Norway's Telenor to see its rating cut from AA to A. KPN's shares fell 3.3 per cent to #16.50 while Telenor lost 1.2 per cent to NKr39.70.
Other telecoms were lower too. France Telecom was off 2.8 per cent at #89.75, Deutsche Telekom down 1.6 per cent to #36.98 and Sonera was off 7.5 per cent to #22.79.
