Stronger than expected British economic data and news of the $30 billion bid for telecommunications giant, MCI, BT's planned US merger partner, helped to spur London shares to new peaks yesterday. The FTSE 100 Index gained 1.4 per cent to close at a new record level of 5317.1.
In Dublin, shares rose strongly. Led by the financials and CRH, the ISEQ Index closed just under 1 per cent higher at 3,838.35. Share markets in Frankfurt and Paris bourses also gained ground.
But on currency markets, the dollar slipped from its highs against the yen, while the Italian lira was jolted by political concerns.
In London, shares in BT jumped 11 per cent at one stage in frantic trading after US group WorldCom said it would bid for MCI, countering an agreed $21 billion merger plan between MCI and BT.
"The market is obviously breathing a sigh of relief that they (BT) no longer run the risk of overpaying (for MCI) but it leaves their international strategy in tatters," said Mr Michael Stiles, analyst at Credit Lyonnais Laing. BT currently owns 20 per cent of MCI stock.
