March 30, 2006	Thursday	Safar 29, 1427

LONDON, March 29: European stock markets climbed on Wednesday, as merger talk helped to offset a tumble on Wall Street overnight, dealers said. London’s FTSE 100 index of leading shares climbed 0.59 per cent to 5,970.60 points in late morning trade. In early afternoon deals, Frankfurt’s DAX 30 gained 0.27 per cent to 5,906.71 points and in Paris the CAC 40 won 0.61 per cent to 5,181.37 points.

The DJ Euro Stoxx 50 index of leading eurozone shares advanced 0.20 per cent to 3,818.70 points.

The euro stood at 1.1998 dollars.

US stocks had tumbled on Tuesday amid disappointment that the Federal Reserve had given no signal it was near the end of its cycle of rate increases, dealers said.

On Wednesday, Japanese share prices jumped to the highest level for five years and seven months as investors bet on a bright outlook for the economy, dealers said.

In London, BG Group jumped 5.05 per cent to 739 pence, topping the FTSE 100, after a London newspaper said the British energy company could face a takeover bid from US energy giant Exxon Mobil, dealers said.

The Independent said Exxon could bid 900 pence per share, valuing BG Group at 31.6 billion pounds (45.7 billion euros, 54.9 billion dollars).

A consortium led by Grupo Ferrovial said it had appointed Macquarie Bank as an adviser over its bid to buy British airports operator BAA.

A statement to the London Stock Exchange said also that Ferrovial had given Macquarie Airports, an investment fund managed by Australian group Macquarie Bank, the option to buy the Spanish company’s stakes in two airports should the consortium succeed in taking over BAA.

Dealers said the move was aimed at preventing a possible counterbid for BAA by Macquarie Bank.

Back in London, BAA rose 0.24 per cent to 829 pence. On March 17, BAA rejected an informal takeover offer from the Ferrovial-led consortium that valued it at 8.72 billion pounds.—AFP