Bank and steelmakers led Frankfurt higher as German equities ended a strong week. In Frankfurt the Xetra Dax index added 24.80 at 5,370.51 for a net gain over the five days of 7.2 per cent. Dresdner Bank rose 2.30 to 42.70 as investors took stock of the news.
Paris ended 14.75 per cent ahead at 4,245.42 on the CAC 40 index helped by a bounce for technology-related stocks and another strong session for LVMH.
Cap Gemini rose 5 to 157 and ST Microelectronics 3.50 to 78.50. LVMH stayed firmly in favour, racking up a three-day gain of more than 15 per cent with a rise of 7 to 212 as investors continued to warm to speculation about a takeover bid for Italian fashion house Gucci. Food group Danone was the day's loss-leader, slipping 17.20 or 7.1 per cent to 226.
Amsterdam ended 1.81 per cent lower at 559.27 on the AEX index in spite of another strong showing for tech shares. Philips rose 2.45 to 65.65 and the fierce rally at Baan continued apace. The shares, which stood at 49.33 in April, rose 1.25 to 12 for a gain this week of 38 per cent.
Gucci, where rumours of an imminent takeover bid resurfaced recently against a background of stake-building by French luxury goods leader LVMH, rose 3.40 to 61. News of strong sales in November and December also boosted sentiment.
Telecoms group KPN fell back on profit-taking and worries about tougher competition as a result of restructuring within the sector across Europe. The shares fell 2.55 to 48.20.
Helsinki was lifted by insurance companies, which prospered on news that Skandia, Sweden's largest insurer, had increased its holding in Pohjola, the Finnish group.
Nokia, the telecommunications group, also attracted interest after it revealed it had won a $280 million (242.40 million) deal to provide GSM digital mobile phone technology to China.
The Hex index rose 121.15 or 2.0 per cent to 6,091.08. The index has risen 9.5 per cent since the start of the year. Skandia's announcement, made after Thursday's close in Finland, sent Pohjola's B shares 5.50 or 11.3 per cent higher to 54. Sampo, one of Finland's biggest insurers, ended 2.30 or 6.4 per cent up at 38.
Analysts said Nokia's announcement helped quell fears it was in danger of conceding ground in emerging markets to Ericsson, its Swedish rival. Nokia rose 3.90 or 3.4 per cent to 119.25.
Madrid recovered from early losses as out-of-favour cyclical stocks outperformed the market. The general index closed 1.06 down at 914.91. It has put on 5.4 per cent this week.
