Yahoo Finance European stocks higher eyeing possible mega-merger
Europe's main stock markets climbed Wednesday amid takeover activity in the brewing sector and an earnings update from Britain's biggest retailer Tesco.
London's benchmark FTSE 100 index rose 0.35 percent to trade at 6,348.35 points around midday in the capital, with gains for heavyweight mining stocks helping to boost sentiment.
In the eurozone, Frankfurt's DAX 30 advanced 0.79 percent compared with Tuesday's close to 9,981.39 points and the Paris CAC 40 grew 0.50 percent to 4,683.77.
In foreign exchange, the euro fell to $1.1241 from $1.1271 late on Tuesday in New York.
German industrial output unexpectedly slumped in August, the economy ministry said Wednesday, as Europe's top export power feels the pinch of slowing growth in China and other emerging markets.
On the corporate front, the world's biggest brewer Anheuser-Busch InBev raised Wednesday its offer for British rival SABMiller to 68 billion pounds (92 billion euros), only to be told it was most likely still too low to save one of the largest ever corporate takeovers.
The deal sought by Belgian-Brazilian InBev would create a global "megabrewer" that would bring together internationally famous brands such as the iconic US brew Budweiser and Stella Artois with Grolsch and Foster's.
But Britain's SABMiller, which has already rejected two previous bids from its rival, suggested strongly that the new offer would be rejected despite the fact it would create a combined new group worth around 220 billion euros ($250 billion).
In afternoon deals, SABMiller shares were up 1.0 percent at 3,661.50 pence, while AB InBev gained 2.0 percent to 100.1 euros. Both brewers had risen strongly before SAB's reaction to the latest offer.
The latest InBev offer meanwhile stands at 42.15 pounds per SABMiller share.
"For now, it?s uncertain if this will be acceptable and investors, judging by the muted response in the (SABMiller) share price this morning are cautious and probably more than a little dubious that this deal will go ahead" said Brenda Kelly, head analyst at traders London Capital Group.
Elsewhere Wednesday, Britain's biggest retailer, supermarket group Tesco, said it had fallen into a net loss during its first half, partly on costs linked to an accounting scandal.
Losses after tax stood at 365 million pounds in the six months to the end of August, compared with a net profit of 6.0 million pounds during the corresponding period a year earlier, Tesco said in an earnings statement.
In afternoon deals, Tesco shares were up 0.49 percent to 193.10 pence, reversing early losses.
In Asia, Japanese stocks extended gains to a sixth session Wednesday after the Bank of Japan decided to hold fire on fresh stimulus measures despite sluggish growth and stagnant prices.
