Europe a mixed bag

December 11, 2001 Posted: 1712 GMT

LONDON (CNN) -- European shares closed mixed on Tuesday, as Europe's biggest media company Vivendi Universal tumbled on concerns it may pay too much for more assets.

Vivendi dropped 4.4 percent in Paris after it confirmed it was in talks with USA Networks to buy it s U.S. entertainment assets.

London's FTSE 100 fell 0.5 percent to 5,160.8 and the CAC 40 blue chip index in Paris dipped 0.1 percent to 4551.94, while Frankfurt's electronically traded Xetra Dax rose 0.5 percent to 5,152.12.

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The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was little changed at 1241.6, with its information technology sector up 3.4 percent, underpinned up positive mid-quarter results from Finland's Nokia.

The world's largest mobile phone maker Nokia rose 4.8 percent after it said it could beat its fourth quarter earnings target and confirmed sales were in line with forecasts as it benefits from a new range of Internet phones on the market.

Sweden's Ericsson climbed 3.2 percent, France's Alcatel added 2.9 percent and the UK's MmO2 rose 4 percent, while German communications giant Siemens (FSIE) rose 3.4 percent in Frankfurt and the world's biggest mobile phone operator Vodafone Group (VOD) dipped 1 percent in London.

U.S. stocks rose at midday Tuesday as investors counting down the hours to the Federal Reserve's last meeting of the year bet another interest rate cut can save the economy from deep recession. The upbeat profit outlook from Nokia helped.

By midday, the Nasdaq composite index rose 23.51 points, or 1.2 percent, to 2,015.76 while the Dow Jones industrial average gained 25.60 to 9,946.64. The Standard & Poor's 500 advanced 3.20 to 1,143.08.

Fiat, Europe's biggest automaker, dropped 6.7 percent. The company announced plans to shed 6,000 jobs, close plants, sell assets, issue bond and shares to cut debt and restore profitability. Italy's biggest industrialist expects to post a net loss for 2001.

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British Airways (BAY) lost 5.6 percent on continuing concerns over reports that Europe's biggest airline may be planning big job cuts. BA is also considering a £1 billion ($1.4 billion) rights issue as part of a restructuring plan to be announced in February, the Times of London said on Tuesday.

Meanwhile, UK-based Compass Group (CPG) -- the world's largest catering company – reported a sharp rise in annual operating profits on Tuesday and confirmed a sales growth target of up 6 percent to 9 percent for 2002. Its shares rose 8.9 percent in London.

In Amsterdam the AEX index was flat, the SMI in Zurich was down 0.4 percent, and Milan's MIB30 index was up 0.2 percent.