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FTSE slips, AEX edges up
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May 1, 2001: 12:28 p.m. ET
London falls after Vodafone says it is in talks to buy BT assets in Japan, Spain
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LONDON (CNN) - London's main index ended lower on Tuesday after heavyweight Vodafone said it was in talks to buy rival British Telecom's Japanese assets.
The FTSE 100 slipped 38.9 points, or 0.7 percent, to 5,298.0, led lower by mobile operator Vodafone Group (VOD) and network systems firm Spirent (SPT).
Amsterdam's AEX rose 0.5 percent to 596.10 in light trade, with pan-European network operator KPNQwest and Europe's biggest cable company UPC among the leading gainers.
Other European bourses were closed on Tuesday for the May Day holiday.
In the U.S., the technology-heavy Nasdaq composite was down 0.7 percent while the blue-chip Dow Jones industrial average gained 0.6 percent.
In the currency market, the euro rose slightly against the U.S. dollar, fetching 89.26 cents from 88.92 in late New York trade on Monday.
Vodafone (VOD), fell 2.8 percent after the world's biggest mobile phone operator and its debt-laden rival British Telecom (VOD) said they were in talks for BT to sell its stakes in Japan Telecom, J-Phone, and Spain's Airtel Movil to Vodafone. BT shares rose 7.4 percent. Analysts value the three stakes at around £4 billion ($5.7 billion).
The world's second-largest liquor company, Allied Domecq (ALLD), fell 5.3 percent after it said first-half pretax profit increased 16 percent to £236 million ($338 million), before costs related to acquisitions and one-time items. The increase in profit was driven by sales of brands like Ballantine's whisky and Beefeater gin.
Property developer Canary Wharf (CWG) shed 5 percent after investment bank Morgan Stanley downgraded its recommendation on the stock and cut its target price.
Spirent (SPT) fell 6.1 percent while telecom equipment maker Marconi (MONI) ended down 1.8 percent.
Software maker Misys (MSY) lost 5.9 percent while peer Logica (LOG) finished 1.5 percent lower.
Anglo-American fund manager Amvescap (AVZ) lost 4.3 percent.
Drugmaker Shire Pharmaceuticals (SHP) declined 5.4 percent.
In Amsterdam, where financial markets were closed a day earlier for a holiday, KPNQwest added 6.3 percent while UPC added 8.3 percent.
Electronics powerhouse Philips rose 3.1 percent.
Chip equipment maker ASM Lithography climbed 2.5 percent while UK chip designer ARM Holdings (ARM) ended up 1.3 percent in London.
Beer maker Heineken rose 1.2 percent, recovering from a sharp earlier slide triggered after the brewer's four-to-five stock split. Heineken shares went ex-dividend.
KPN Telecom rose 2.8 percent after its German mobile unit E-plus said on Sunday sales could be boosted by billions of marks thanks to contracts with Group 3G, owned by Telefonica, Sonera, and France Telecom's MobilCom.
-- from staff and wire reports 
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