Shares in Eon, Germany's second largest utility, soared on news that the group planned to sell its Degussa chemicals arm and focus on its core energy business.
The news came hard on the heels of its eagerly awaited #8.2 billion agreed bid for Britain's Powergen.
Eon shot up 6.1 per cent to #54.89 as investors welcomed the group's plan to concentrate on its core business. But Degussa gave up early gains to close 2.9 per cent lower at #31 as the market registered impatience that Eon would take between three and five years to sell its Degussa stake.
Deutsche Bank raised its rating on the Eon share price and added the stock to its European focus list. The investment bank also set a share price target of 66.70, a 30 per cent premium to Friday's closing price.
Germany's Farmatic traded up to #17.75, a 4.4 per cent premium to the issue price as the green energy company made its debut on the Neuer Markt.
Farmatic floated 2.75 million shares last week and the #17 a share issue price was at the bottom of the bookbuilding range.
HypoVereinsbank stood out in a mixed German banking sector, jumping 3.4 per cent to #60.72 as the market reassessed its 6.6 per cent stake in Eon.
Switzerland's Zurich Financial climbed 4.3 per cent to 587 Swiss francs on continuing speculation that France's Axa or Britain's CGNU were considering bids after the shares lost nearly half their value since the start of the year. The slide gathered pace after news of dismal results for 2000 and disappointing forecasts last month.
French life sciences group Aventis put on 2.2 per cent to #89.90 on speculation that its Crop Sciences business would be sold to Germany's Bayer, or Monsanto, DuPont or Dow in the US.
Bang & Olufsen rebounded 9.7 per cent to 215 Danish krone, recouping some of last week's heavy losses which followed a profits warning from the upmarket Danish audio and television manufacturer. The shares had plunged 23 per cent on Thursday after the company cut its full year result forecast due to slow sales growth in Europe and the US.
