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UPDATE 2-M&A lifts European shares despite Brexit worries

Published 11/09/2020, 09:37
Updated 11/09/2020, 17:24
© Reuters.
FCHI
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ACCP
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ALSO
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STOXX
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ARYN
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SXEP
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SXKP
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ENX
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SXDP
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ATCA
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SX86P
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(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Altice Europe hits 3-month high as founder to take co
private
* Aryzta jumps on advanced talks with Elliott for takeover
* Euronext in talks with LSE to buy Borsa Italiana
* EU ramps up no-deal Brexit preparations

(Updates prices to close, adds comments)
By Shreyashi Sanyal
Sept 11 (Reuters) - European shares ended a choppy trading
session higher on Friday, as investors weighed signs of a pick
up in M&A activity against the economic threat from growing
prospects of a no-deal Brexit.
The pan-European STOXX 600 index .STOXX rose 0.1% and
ended the week about 1.8% higher. The index has been in a
holding pattern since June as economic growth lost momentum due
to a stronger euro, increasing the cost of European exports.
Meanwhile, the EU is ramping up preparations for a
tumultuous end to the four-year Brexit saga as top officials
prepared to brief its 27 members on British Prime Minister Boris
Johnson's plan to break the divorce treaty. "The Brexit talks could turn into another major headache for
investors," said Milan Cutkovic, market analyst at AxiCorp.
"UK Prime Minister Boris Johnson still intends to rewrite
the UK's Brexit treaty, even as the EU is threatening to take
legal actions and the chances of securing a trade deal are
decreasing."
Most of the major sector indexes were lower, a day after the
ECB held interest rates steady and said it was closely watching
the euro.
Oil and gas stocks .SXEP were among the biggest decliners
as crude prices fell, while defensive plays including healthcare
.SXDP , telecoms .SXKP and real estate .SX86P edged higher.

M&A activity took centre stage, with Altice Europe's
ATCA.AS shares soaring 24.4% to a three-month high and on top
of the STOXX 600 after it agreed to be bought by its founder
Patrick Drahi. Swiss frozen baked goods maker Aryzta ARYN.S jumped 12.5%
after it said it was in advanced talks with private equity firm
Elliott Advisors over a takeover deal.
The pan-European Euronext exchange ENX.PA edged 1.7%
higher as it confirmed with Italian state lender Cassa Depositi
e Prestiti (CDP) that they were in talks to buy the Milan stock
exchange Borsa Italiana. France's CAC 40 index .FCHI saw some changes to its
components. Accor ACCP.PA dropped 4.3% on its exclusion from
the index, while Alstom ALSO.PA jumped 1.6% on being included.

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