Shares in Frankfurt rallied, seemingly pushing to one side the caution that sent the market down 6.1 per cent last week. Leading utility Viag topped the performance charts on the weekend news of management changes at Alusuisse Lonza. These were widely interpreted as putting Viag's planned takeover of Algroup firmly back on track and lifted its shares €31 or 6 per cent to €511. Elsewhere in the sector Veba rose €1.05 to €49.95.
The FTSE Eurotop 300 index fell 19.11 or 1.54 per cent to 1,256.77. Insurance stocks, notably weak on Friday, rallied after Munich Re attempted to clear some of the fog away from the vexed question of heavier taxes. It said new tax rules would be less onerous than anticipated, and the shares jumped €3 to €184. Allianz gained €4.50 at €285.50. Motors were buoyant. Daimler-Chrysler added 98 cents at €80.98 ahead of what is widely seen as an upbeat annual conference tomorrow. BMW, which holds its annual news conference today, improved €23.50 to €651.50, while Volkswagen hardened 13 cents to €60.13.
Paris moved higher, with the CAC-40 adding 37.94 at 4,153.65. Renault improved as investors warmed to the latest assessment from the management of the motor giant of the tie-up with Nissan of Japan. The shares, up 7 per cent at one stage, came off their session highs to close €1 better at €35. Rising oil prices and the merger between BP Amoco and Atlantic Richfield buoyed French oil stocks. Elf jumped €6 to €131 and Total €1.40 to €114.0.
Defence-related stocks stayed firm. Thomson CSF led the way, rising €1.50, or 5.4 per cent to €29.50 after announcing a deal worth £23 million with the British Ministry of Defence to supply communication systems for military aircrafts. Hotelier Accor was top performer, rising €14.10 or 6.4 per cent to €234.80 ahead of its full-year results due out today. France Telecom, however, performed poorly, falling €1.25 to €71.75 after Goldman Sachs cut its price target to €82 from €86.50 in response to the company's 1998 results.
Amsterdam added 9.0 at 534.56 on the AEX index, although most of the day's action was on second-line stocks following the news that jobs agency Content was in takeover talks. Content surged €11.20 or 51.4 per cent to €33 on news of a possible bid from Creyf of Belgium. The announcement sparked talk of an immediate counterbid from a Dutch employment agency, with most commentators pinpointing Vedior as a possible additional suitor.
Among other Dutch job agencies, Unique rose €2 to €28.30 and Brunel €1.50 to €18.90. Randstad improved 40 cents to €43.15 but EVedior came off 45 cents at €20.55. Among blue chips, Royal Dutch continued to warm to the improved oil price background, adding a further €1.65 at €50. Philips gained €1.95 to €74.35 while in financials ABN AMRO added 40 cents at €19.20. Media groups were active. VNU rose €1.25 to €34.75 and Elsevier gained 65 cents or 5.2 per cent to €13.25.
