Europe ends higher

December 17, 2001 Posted: 1734 GMT

LONDON (CNN) -- European markets closed higher on Monday, boosted by a Siemens-led run-up in techs and a strong performance from France's Vivendi Universal.

London's FTSE 100 rose 1.5 percent to 5,136.3 and the CAC 40 blue chip index in Paris gained 3.34 percent to 4,485.2, while Frankfurt's electronically traded Xetra Dax climbed 35 percent to 5,080.4.

The Pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 2.4 percent to 1,228.4 with the IT, computer and media sectors all in positive territory.

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Vivendi Universal shares were up 6.8 percent after sealing a deal worth at least $10.3 billion to buy USA Networks' entertainment arm, giving it a key distribution foothold the United States.

The French media firm announced on Friday it had bought a stake in satellite-TV operator EchoStar Communications for $1 billion.

Also strong was Thomson Multimedia, gaining 5.5 percent, following an announcement it was buying leading U.S. digital media company Grass Valley Group.     

In the technology sector, UK components maker ARM Holdings soared 10.2 percent higher after two leading South Korean producers raised their contract chip prices.

Infineon, the world's fourth-largest chip maker, was up 6.13 percent on news it would cut less jobs than expected. A German magazine reported the company would cut 200 fewer jobs than the 5,000 originally planned. Dutch chip maker ASML climbed 5 percent.

German tech giant Siemens jumped 6.8 percent, helped by Chief Executive Heinrich von Pierer's reiteration over the weekend that he expected the company to post a better result in 2002 than this year. French telecom equipment maker Alcatel was up 5.5 percent.

Finnish telecom equipment maker Nokia rose 5.3 percent in Helsinki, while mobile phone group Ericsson was up 1.7 percent in Stockholm.

Meanwhile, Deutsche Telekom rose 4.8 percent as Deutsche Bank analysts named the German telecom company one of their top picks amongst European telecom companies.

In the financial sector, Royal Bank of Scotland rose 4.6 percent after stating on Monday its bad debt charges would rise more than expected this year, but profits would still meet expectations. Commerzbank was up 3.75 percent in Frankfurt.

Britain's P&O Princess Cruises gained 5 percent after it rejected a counterbid by U.S. cruise operator Carnival Corp. P&O has already agreed to merge with Royal Caribbean Cruises of the U.S.

CGNU, Britain's largest insurance company, climbed 5 percent after clinching a deal to buy 50 percent of a unit of Spain's Caja Espana for 88 million.

Airbus SAS shares rose 1.5 percent after the commercial jetmaker said it plans to cut some 500 jobs in Britain to counter slowing demand for airlines.

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Britain's GlaxoSmithKline lost 2.6 percent after a U.S. court ruled in favour of an Israeli drugmaker in a dispute over its second largest product, the antibiotic Augmentin. GlaxoSmithKline has said it will appeal the ruling.

In Amsterdam, the AEX index was up 2.8 percent, the SMI in Zurich rose 1.9 percent and Milan's MIB30 index gained 3.3 percent.

In the U.S, stocks rose at midday on Monday as multi-billion dollar deals in the biotech and media sectors gave investors a reason to rally.

The Nasdaq composite index rose 25 points, or 1.3 percent, to 1,978.2. The Dow Jones industrial average was up 94.8 points, or 0.97 percent to 9,905.95.