Shares in Frankfurt ended lower in spite of a spirited performance by Deutsche Telekom, the market heavyweight, late in the session.
Telekom fell €45.35 at the opening bell amid deepening concern over the way the bidding for Germany's latest mobile phone licences appeared to be spiralling out of control. By early afternoon, however, the shares rallied following the announcement by Telekom that its T-Mobile arm was lowering its sights and bidding for two blocks rather than three.
Telekom spun round, reversing a decline of more than 3 per cent to push 70 cents better at €47.65 in 10 million shares traded.
Mobilcom, which was backed in the bidding by France Telecom, also rallied to rise €2.74 to €118.25. Deutsche Bank, up more than 7 per cent over the past two sessions, fell back within a generally firmer banking sector. The shares lost €2.32 at €100.28.
Paris fell 48.74 to 6,635.34 on the CAC 40 index with direction dictated by a 3.1 per cent setback at top index weighting France Telecom. It fell €4.40 to €136. Foods group Danone lost €4.80 at €158 and there was profit-taking at luxury goods leader LVMH, which shed €1.60 at €94.50 following a downgrade for the sector by Merrill Lynch.
Amsterdam finished little changed after a performance that masked a number of sharp movements among leading stocks. ABN Amro fell 65 cents to €27.55 and KLM lost €1.10 at €30.75. Telecoms leader KPN hit a low for the year before closing at €36, down 29 cents in 13.6 million shares traded.
Zurich pulled back from Wednesday's high for the year in response to weakness in Roche, which released half-year results, and profit-taking in financials. The SMI index finished 57.6 lower at 8,260.8.
Roche certificates was marked down SFr690 or 4.2 per cent to SFr15,700 (€10,048) amid disappointment about first-half drug sales, specifically anti-obesity drug Xenical and antibiotic Rocephin.
In Milan, Telecoms were lower as Germany's blockbuster UMTS auction raised the prospect of higher than expected prices for Italian UMTS licences.
