Shares in Paris spent most of yesterday in negative territory after a steep fall for market heavyweight France Telecom.
The CAC-40 index fell 67.52 or 1.2 per cent to 5,481.10 following disappointment that France Telecom had lost out in the auction for E-Plus. Analysts said the failure to win control of Germany's third-biggest mobile phone company had been a severe blow to France Telecom's cellular strategy.
The telecom group, which has an index weighting of 13 per cent, slid 8 per cent or €9.40 to €106.50 in heavy volume. At one stage, shares hit a low of €104.60.
However, Cap Gemini continued its meteoric rise, closing up €16.30 at €232.50, an increase of 7.5 per cent. The main impetus came from market talk that it was close to a deal with Ernst & Young. Cap Gemini said talks were continuing about a possible combination of IT and consulting activities. Club Mediterranee was another big mover, jumping 6 per cent to €116.40 on talk of a partnership.
Frankfurt took in a stellar performance from software leader SAP, which rose €49.50 or 10.3 per cent to €534.50 on news of a contract to supply US giant Hewlett-Packard.
Merger partners Viag and Veba stayed in the doldrums, adding to recent marked losses as a result of renewed worries about possible electricity price cuts. According to some analysts, competition could force average electricity prices in Germany down by some 10 per cent in 2000. Viag shed 40 cents at €16.15, while Veba rallied in late trading to close 7 cents easier at 43.60.
The Xetra DAX index ended 20.16 lower at 6,097.90.
Madrid ended down amid broad profit-taking. The Ibex-35 index closed 125.6 lower at 11,434.5.
Telecoms giant Telefonica, which has recently led the market rally, closed down 3.3 per cent or 80 cents at €23.30 in heavy trading.
Amsterdam gained 1.27 at 619.35 on the AEX index in spite of weakness among the heavyweight international stocks.
KPN shot ahead after announcing the €18.7 billion purchase of a 77.5 per cent stake in E-Plus, Germany's third-largest mobile phone operator. The stock ended €8.35 or 12.3 per cent better at €76.50, with 8 million shares traded.
