LONDON (CNNfn) - Europe's major markets closed lower Monday, led by telecom and technology stocks, as Vodafone Group cast a pall over the sector after one of its biggest shareholders offloaded part of its stake.
London's FTSE 100 index slipped 18.7 points, or 0.3 percent, to 6,582.0. Vodafone (VOD), the world's biggest cell phone operator, dropped 4.6 percent after Hong Kong conglomerate Hutchison Whampoa offered to sell a $2.5 billion bond exchangeable into Vodafone shares, which traders said would cut its Vodafone stake to 1.5 billion shares from 2.5 billion.
The blue-chip CAC 40 in Paris slipped 28.35 points, or 0.4 percent, to 6,675.01, led by index heavyweight France Telecom (PFTE), down 4.1 percent. Credit rating firm Fitch cut the telecom company's long-term debt rating to A from AA, following its purchase last month of U.K. mobile phone company Orange for  43 billion.
 In Frankfurt, Xetra Dax index dropped 53.32 points, or 0.73 percent, to 7,214.45, with Deutsche Telekom (FDTE) leading declines, falling 2.6 percent.
Among Europe's other leading markets, the SMI in Zurich rose 0.1 percent to 8,095.2, Amsterdam's AEX index and Milan's MIB30 index rose 0.2 percent
The FTSE Eurotop 300 index, a broad basket of Europe's largest companies, rose 0.1percent, with its oil index up more than 3.2 percent. Oil stocks rose amid concerns OPEC's latest production hike was inadequate.
In the U.S. Monday, the Dow Jones industrial average rose 0.5 percent to 11,272.81, while the Nasdaq composite slipped 1.2 points to 3,977.21.
In the currency market, the euro hit yet another record low before recovering slightly to fetch 86.12 U.S. cents, down from 86.97 cents in late trading in New York Friday. The euro earlier plumbed a new record low of 85.70 cents.
Glaxo-SmithKline merger delayed
In London, drug companies Glaxo Wellcome (GLXO) and merger partner SmithKline Beecham (SB-) headed lower after saying they delayed the completion date for their merger, previously scheduled for Sept. 25, because of a continuing U.S. antitrust review of the planned combination. SmithKline fell 1.1 percent and Glaxo shed 0.6 percent.
 Technology stocks declined again after the Nasdaq's latest slide Friday. Internet service provider Freeserve (FRE) declined 4.4 percent, software and IT services firm CMG (CMG) dipped 3.1 percent, and Colt Telecom Group (CTM) fell 1 percent.
Media stock also weighed the market down. Pearson (PSON), owner of the Financial Times newspaper, fell 4.3 percent, and television broadcaster Carlton Communications (CCM) dipped 2.7 percent.
Oil company shares clawed back earlier losses. Brent crude for October deliver rose 62 cents to $33.40 in London, amid concern the latest agreement by OPEC to increase output by 800,000 barrels a day is too little to late. BP Amoco (BP-) rose 2.8 percent, Shell Transport and Trading Co. (SHEL) climbed 2.9 percent, and France's TotalFina Elf (PFP) added 4.1 percent.
Shares in Celltech Group (CCH) rose 3 percent amid expectations that the biotechnology company will report its first profit when it announces results Tuesday. The firm is seen benefiting from last year's acquisition of Medeva.
Defense and aerospace companies got a lift as analysts at Morgan Stanley Dean Witter raised their recommendation on BAE Systems (BA-) shares to "strong buy", spurring the stock to a 5.9 percent gain in London. In Paris, media and missiles company Lagardère (PMMB) rose 1.1 percent.
Chipmaker STMicroelectronics (PSTM) dropped 1.9 percent, and German rival Infineon (FIFX) slipped 0.7 percent. Phone equipment maker Alcatel (PCGE) fell 0.8 percent, while data network operator Equant (FEQU), buoyed last week by takeover speculation, declined 1.8 percent.
Mobile phone and construction company Bouygues (PEN) topped the losers board, dropping 4.3 percent.
German insurers fell as index-tracking funds lightened their positions in the stocks ahead of a re-jig of Stoxx Ltd.'s pan-European Stoxx 50 and Euro Stoxx 50 indexes. Munich Re (MUV) fell 2.1 percent and Allianz (FALV) dropped 1.9 percent.
In Milan, shares of TV company Mediaset jumped 2.6 percent after a weekend report said its talks to participate in the purchase of Vodafone's Infostrada fixed-line unit had been trumped by Wind, an alliance of France Telecom and Italian utility Enel. Enel shares fell almost 2.7 percent. 
-- from staff and wire reports
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