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Europe solid on deals
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December 11, 2000: 12:29 p.m. ET
Media deal and prospect of bank, telecom takeovers power bourses
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LONDON (CNNfn) - Europe's main markets closed sharply higher Monday as banks, media and telecom stocks advanced in reaction to deals and amid optimism for more takeover activity.
Several large-capitalization shares also rose, as investors welcomed a delay to changes to the widely watched Morgan Stanley Capital International series of worldwide stock indexes.
London's benchmark FTSE 100 index rose 82 points, or 1.3 percent, to 6,370.3. Internet security software company Baltimore Technology (BTM) and information technology company Logica (LOG) topping the leader board.
 In Paris, the blue chip CAC 40 jumped 138.56 points, or 2.3 percent, to 6,077.88, with TV broadcaster TF1 (PTFI) and France Telecom (PFTE) among the leading gainers.
Frankfurt's Xetra Dax closed up 1.36 percent, or 91.27 points, at 6,782.52, led by Deutsche Telekom (FDTE) and Deutsche Bank (DBK).
Amsterdam's AEX index rose more than 1 percent, while the SMI in Zurich and Milan's MIB30 gained 0.5 percent each.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, gained 1.8 percent, with the computer sub-index up 5.4 percent and the telecom sector gaining 4.1 percent.
 click here for the biggest movers on the ftse 100 in London
 click here for the biggest movers on the dax 30 in Frankfurt
 click here for the biggest movers on the cac 40 in Paris
U.S. markets rose midday Monday. The tech-heavy Nasdaq composite climbed more than 3 percent to 3,006.51, while the blue chip Dow Jones industrial average added just 0.5 percent to 10,770.17.
In the currency market, the euro dropped more than 1 cent to 87.75 U.S. cents from 88.91 cents in late New York trading on Friday.
Investors were relieved by Morgan Stanley Capital International's decision to wait a year before implementing changes to the way it allocates weightings to stocks in its global indexes.
 After the change, a company's weighting will be proportional to the amount of stock freely available for investors, excluding shares held by strategic investors such as governments, corporations, controlling shareholders and management. That could cut the weighting of companies like France Telecom and Deutsche Telekom (FDTE), which are still held to a great extent by their national governments.
France Telecom surged more than 11 percent and Deutsche Telekom jumped 6.9 percent, topping the list of gainers on Frankfurt's Dax.
Vodafone Group (VOD), the world's largest mobile-phone company and the most valuable stock on the FTSE 100, rose 3.5 percent after the Financial Times reported it had agreed to buy a 15 percent stake in Japan Telecom, the country's third-largest telecom operator.
TV broadcaster Carlton Communications (CCM) soared 6.6 percent after saying it was selling half the company -- its film imaging and processing unit Technicolor -- to Thomson Multimedia (PTMM) in exchange for $1.35 billion cash and a 5 percent stake in the French consumer electronics firm. Thomson Multimedia tacked on 1.3 percent in Paris.
 Other broadcasters making ground included British Sky Broadcasting Group (BSY), Europe's second-biggest pay-TV company, jumping 4.4 percent while France's biggest broadcaster TF1 (PTFI) added 5.5 percent.
Abbey National (ANL), Britain's second-largest mortgage lender, rose 4.8 percent as investors bet rival Lloyds TSB Group (LLOY) would make an increased takeover offer after having its first, informal approach rejected last week. Lloyds rose 4.5 percent, and the Bank of Scotland [LSE:BScT], which began merger talks with Abbey National some five weeks ago, edged up 0.4 percent.
In the financial services sector, French bank Société Générale (PCGE) gained 3.6 percent and rival BNP Paribas (PBNP) added 3.7 percent, while Germany's Deutsche Bank (FDBK) climbed 3.9 percent and HypoVereinsbank (FHVM) leapt almost 4 percent.
U.S. gains fire up techs
Technology stocks were buoyed by gains among U.S. counterparts. Fiber optic component maker Bookham Technology (BHM) soared 8 percent and telecom equipment maker Marconi (MNI) advanced 8.8 percent. The company is to team up with South Korea's LG Electronics to develop and sell next-generation mobile phone network technology.
French rival Alcatel (PCGE) rose 5.6 percent, Sweden's Ericsson gained 4.4 percent and Nokia, the world's No.1 mobile phone maker, added 2.4 percent.
Chip designer ARM Holdings (ARM) was up 5 percent. German chip maker Infineon Technologies (FIFX) edged up 0.4 percent in Frankfurt and Franco-Italian rival STMicroelectronics (PSTM) advanced 4.2 percent.
Europe's largest software maker SAP (FSAP) rose almost 5.5 percent in Frankfurt while Britain's Sage Group (SGE) added 4.2 percent and Internet security software maker Baltimore Technology (BTM) jumped 10.4 percent. Information technology company Logica (LOG) soared 9.6 percent.
Elsewhere, French defense electronics firm Thomson-CSF (PHO) gained almost 6 percent, defense-to-magazine publisher Lagardère (PMMB) added 2.3 percent and food processor Groupe Danone (PBN) rose 3.8 percent.
In Frankfurt, carmaker DaimlerChrysler (FDCX) revved up 2.8 percent.
Drug company Shire Pharmaceutical Group (SHP) plunged 15.8 percent. Investors took fright at the $4 billion price tag the company agreed to pay for Canada's BioChem Pharma (BCHE: Research, Estimates), as the U.K. firm moved to expand its presence in the market for HIV and cancer drugs.
--from staff and wire reports 
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