The European stock market closed stable on Monday (22), with warnings from Germany about a stricter lockdown overshadowing Telecom Italia’s earnings after a US$ 12 billion proposal by the North American fund KKR to take over the Italian group.
The FTSEurofirst 300 index fell 0.02% to 1,881 points, while the pan-European STOXX 600 index lost 0.01% to 486 points.
STOXX had backed off earlier in the day when German Chancellor Angela Merkel said Europe’s biggest economy needed tighter restrictions to rein in a wave of Covid-19 infections.
This comes after a jump in the Covid-19 cases led Austria into lockdown.
In turn, telecommunications stocks rose 1.8%, the best day since March, fueled by a 30.3% jump in Telecom Italia (TIM).
KKR would have set an indicative price of 50.5 euro cents for its bid, a 45.7% premium over TIM’s closing price last Friday (19).
“The prize is very attractive, and that’s why we were seeing a big jump in stocks, but an interesting thing will be the Italian government’s response to the offer, which lays the foundation for future bids from abroad – and all the major Italian companies that have fallen in difficult times,” said Craig Erlam, senior market analyst at OANDA.
- In London, the Financial Times index rose 0.44%, to 7,255 points;
- In Frankfurt, the DAX index fell 0.27% to 16,115 points;
- In Paris, the CAC-40 index lost 0.10%, to 7,105 points;
- In Milan, the Ftse/Mib index appreciated 0.17%, to 27,382 points;
- In Madrid, the Ibex-35 index rose 0.78%, to 8,821 points;
- In Lisbon, the PSI20 index rose 0.32%, to 5,519 points.
Reference: CNN Brasil
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