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Deal talk bolsters bourses
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March 29, 1999: 6:18 a.m. ET
Prospect of several huge deals lifts bourses; London the biggest gainer
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LONDON (CNNfn) - Speculation about several multi-billion dollar deals dominated European markets Monday, helping to lift bourses higher by mid-morning. The deal buzz nullified the impact of a weak performance from Asian markets overnight and the escalating crisis in Serbia and Kosovo.
A mixture of fact and speculation helped push the main bourses higher. London was the largest gainer with the FTSE 100 up 1.13 percent at 6,208.7, a rise of 70 points. In Paris, the CAC 40 was 0.53 percent higher at 4,137.56.
Frankfurt's electronically-traded Xetra Dax pushed further into positive territory after small losses at the open. German blue chips were up 26 points at 4,825.13, while Zurich's SMI hovered around the 7,050 mark, a rise of 43 points.
London's main kicker came from the confirmation by oil giant BP Amoco (BPA) that it is in talks with Atlantic Richfield (ARC) of the U.S. in a deal worth some $25 billion.
Index heavyweight BP Amoco traded just under 5 percent higher at 1,087 pence. Shell (SHEL) stock managed a small rise to trade up 1.46 percent at 417 pence.
Speculation drove the shares of another London heavyweight higher Monday amid reports of a possible tie between pharmaceutical giants Glaxo Wellcome (GLXO) and Bristol Myers-Squibb (BMY). The Financial Times reported Monday the two had called off merger discussions, although the newspaper said more talks could be on the agenda.
Glaxo's shares were up 3.01 percent at 1,956 pence.
Troubled chemical giant ICI (ICI) was also up strongly after the company confirmed to Reuters Monday that it was holding talks with family-owned Huntsman Corp. of the U.S. "and others" over the possible sale of two units for around $3 billion. The stock was 4.74 percent higher at 551 pence.
The apparent removal of doubts over whether a planned merged between German conglomerate Viag (FVIA) and Switzerland's Algroup (formerly known as Alusuisse) would go ahead lifted the two stocks. Viag stock was up 23 euros to 503 euros. In Zurich Algroup shares gained 41 francs to 1,663 francs.
Reports toward the end of last week suggested that the deal was in trouble but Reuters reported Monday that Algroup maintained the merger was still on, despite the resignation of its chairman.
One done deal sent the stock of French car maker Renault (PRNO) soaring in Paris. The car group confirmed Saturday that it would pay $5.4 billion for a 36.8 percent stake in Japanese rival Nissan. Renault's shares jumped over 6 percent in mid-morning trading to 36.15 euros.
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