Frankfurt rapidly unwound the Xetra DAX index in the final hours to close off 28.79 at 5,061.28 after a session best of 5,206.1. But speculation about senior management changes got firmly behind BMW. The motor group has attracted negative comment lately as a result of weak earnings. Media-driven rumours that chief executive Mr Bernd Pischetsrieder's job was on the line sent the shares to a high of €693.50 before closing €40, or 6.5 per cent higher, at €660.

Commerzbank came off 27 cents to €25.66 as investors peered forward to next Monday and the bank's annual results, which kick off the sector reporting season.

Fading concerns that its merger with Krupp could be delayed sent Thyssen higher, lifting the shares €6.05 to €164.85. A heavyweight broker upgrade for British Telecom helped boost Deutsche Telekom, up €1.98 to €39.60.

Paris pared early gains to finish with the CAC-40 index off 21.42 at 4,167.42. Software leader Cap Gemini, down €7, or 4.1 per cent, at €166, was the day's steepest faller.

Diversified water group Vivendi dipped €4 to €254 after Merrill Lynch cut the shares to "accumulate" from "buy". Michelin, up steeply on Wednesday on talk of tyre industry consolidation, came off 69 cents at €33.50.

Amsterdam managed to stay positive on a dull day generally for bourses, with strong gains for Royal Dutch and ASM Lithography helping to lift the AEX index 4.15 to 531.27.

Royal Dutch was a strong market ahead of next week's results statement. The shares gained €1.40, or 3.9 per cent, to €37.65. ASM Lithography was the strongest performer, rising €2.70, or 7.2 per cent, to €40.35 after Morgan Stanley Dean Witter's upgrade to "outperform" from "neutral".

Milan closed just above the day's lows with the Mibtel index 52 weaker at 23,438. Italgas lost 20.8 cents to €5.063 after Merrill Lynch cut its recommendation on the stock.

Fiat pulled back from €2.94 to close 6.2 cents weaker at €2.896. Enthusiasm for the stock was spurred by reports that the group had struck a deal with a Chinese motor manufacturer to make and sell light trucks in China.