Shares in Frankfurt reversed three days of decline with Deutsche Telekom, the market heavyweight, helping to send the Xetra DAX index up 159.73 to 6,969.37. The FTSE Eurobloc 100 index rose 10.44 to 1,335.93, while the FTSE Eurotop 100 was up 41.67 at 3,484.33. The FTSE Eurotop 300 index was up 13.86 at 1,510.85.
Plans for an April float for Deutsche Telekom's Internet business combined with news that Sprint of the US was pulling out of its Global One venture with Deutsche Telekom and France Telecom sent the stock smartly ahead. Deutsche Telekom and France Telecom are buying Sprint's near half share in Global One in a deal that allows the European groups to dispose of their 10 per cent stakes in Sprint, worth about $5 billion (€5 billion) apiece.
After a hectic session characterised by talk of Deutsche Telekom hitting the takeover trail in the near future, the shares jumped €4.69, or 7.1 per cent, to €70.70. Mannesmann also rose, rallying from Tuesday's weakness with a €12.80 rise to €271.46.
In financials, Allianz gained €8.50 to €342 and Munich Re €14.60 at €280.40. Deutsche Bank gained €1.06 to €79.46, helped by news of an increased dividend.
Paris ended higher, fuelled by telecoms shares. Vivendi was up another €3 to €95 after it announced a board meeting tomorrow and speculation on its stance towards the Vodafone/Mannesmann takeover battle. France Telecom, which represents 12.5 per cent of the CAC40 index, surged €4.8 to €127.9 on news of the Sprint deal.
Chipmaker STMicroelectronics was also boosted by a re-rating of its price target by Lehman Brothers, but the stock ended 1.1 down at €165. Sanofi-Synthelabo jumped €2.15, or 6.2 per cent, to €37 as The CAC-40 index closed 48.82 higher at 5,646.32.
Amsterdam fell after selling for the heavyweight internationals. The AEX index ended off 2.64 at 637.39. Royal Dutch lost ground with oil industry sentiment overshadowed by mixed results from Exxon of the US. The shares fell €1.31 to €58.25.
Madrid ended sharply higher after a volatile day, as investors remained wary about interest rate rises in the US and Europe. The Ibex 35 rose 167.9 to 11,031.4.
