Reply #52: European banks lifted by merger speculation

[Ghost Dog]

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=38954.4927083333-880829851&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

European equities were largely flat on Friday, but merger speculation enlivened the banking sector. Italian banking mergers remained in the spotlight after Credit Agricole, the biggest shareholder in Italy’s Banca Intesa, gave its approval to the possible merger between Intesa and Sanpaolo IMI. The board members of both banks were scheduled to meet on Saturday to discuss the merger. Shares in Intesa closed up 0.8 per cent to €5.066, while Sanpaolo gained 3.5 per cent to €16.10. Domestic rivals were also higher as the prospect of further consolidation in the sector heightened. Capitalia climbed 3.2 per cent to €6.98 but Mediobanca fell 0.2 per cent to €17.035.

By the close of trade, the FTSE Eurofirst 300 was up 0.1 per cent at 1,359.64, while Frankfurt’s Xetra Dax was flat at 5,811.47. In Paris, the CAC 40 was also flat at 5,111.13 while London’s FTSE 100 gained 0.2 per cent to 5,878.6.