Bayer, Alcatel Lift Europe

Elena
24 Mar, 2006
Frankfurt

European stocks traded higher at mid-day supported by merger-and-acquisition talk among drug makers and telecom-equipment companies. The German Bayer offered 16.3 billion euro to Schering, exceeding the bid from its rival Merck. The French Alcatel is reportedly in talk with Lucent Technologies for a potential deal. The German DAX 30 gained 0.2%, the French CAC 40 rose 0.4%, and London FTSE 100 climbed 0.6%.

[R]8:00 AM European averages traded higher on deal talk.[/R]
European markets advanced at mid-day dealings, lifted by merger-and-acquisition activity which helped markets largely ignore the weak close on Wall Street yesterday. German drug makers and the French telecommunication company Alcatel were in the spotlight with Bayer offering 16.3 billion euro to Schering and Alcatel getting into talk with Lucent Technologies about a prospective merger deal. The German DAX 30 gained 0.2%, the French CAC 40 rose 0.4%, and London FTSE 100 climbed 0.6%.

[R]7:45AM Asian markets broadly advanced the Nikkei up on property stocks.[/R]
Asian-Pacific benchmarks finished broadly higher with the Nikkei rising 0.4% to 16.560.87, lead by gains in real-estate and railway issues. Property stocks advanced on economic data which showed that commercial land prices rose for the first time in 15 years, giving signal that the country is getting out of deflation. The biggest property developer Mitsui Fudosan gained 0.4%, while Sumitomo Realty & Development rose 2.6%. Across the region, South Korea’s Kospi recovered from early losses to climb 0.7%, Taiwan Weighted index gained 0.2%, supported by steel stocks and expectations of higher steel prices. Hong Kong’s Hang Seng fell 0.4%, despite solid earnings. Shanghai Composite dropped 0.6%, ending a four-session gaining streak.