There was a mixed picture for telecommunications and technology companies as the markets digested the latest gloomy US corporate news from Corning and mulled comments from Alan Greenspan, chairman of the US Federal Reserve. Alcatel fell 4.7 per cent to €64.

The French names in the front line for 3G mobile phone licences rose at first on hopes that the government would cut the price, but then fell back. France Telecom ended down 0.4 per cent at €95.50, while Vivendi Universal trimmed its gains to end 0.5 per cent higher at €81.50.

Bouygues, which is likely to withhold its decision to bid until the January 31st deadline, rose 3.5 per cent to €58.50. Suez Lyonnaise, which quit the race on Wednesday, rose 3 per cent to €185.90.

Among the mobile equipment makers, Sweden's Ericsson, which releases results today, reversed morning losses to end 4.5 per cent higher at SKr118.50, but Finland's Nokia fell 2.8 per cent to €40.68.

The French catering group Sodexho rose 4.5 per cent to €215, a lifetime high, after it announced it intends to make a $900 million offer for the 52 per cent of its US unit Sodexho Marriott Services that it does not already own. Deutsche Bank raised its rating from "market perform" to "buy" and said a target of 250 would not be out of line with the valuations of its peers and its historical trading range.

In the biotechnology sector, Serono was in demand on the tail of upgrades from two investment banks. The shares shot up 7.9 per cent to €1,360. Goldman Sachs promoted the Swiss-based group to its recommended list, set a price target of SFr1,750.

Cosmetics group L'Oreal sank as 2000 sales figures matched expectations but failed to excite the market. The shares, which had outperformed their peers this year, ran into profit-taking and closed with a loss of 1.4 per cent at €80.70.

The corporate scramble for a slice of the Spanish power generation market stepped up a gear yesterday with Portugal's EDP bidding €2.7 billion for Cantabrico.

News of the deal sent Cantabrico up 5.6 per cent to €23.75 after a session high of €23.84, as traders licked their lips in anticipation of more bids to come.

Swedish fashion house Hennes & Mauritz shot ahead following relief at the 2000 results and the group's upbeat stance on the outlook for the current year.