September 15, 2006	Friday	Sha'aban 21, 1427

LONDON, Sept 14: European stock markets climbed on Thursday, lifted by takeover speculation surrounding the utilities and transport sectors, and following solid gains in Tokyo and by Wall Street overnight, dealer said.

London's FTSE 100 index of leading shares rose 0.64 per cent to 5,930.00 points in late deals. Frankfurt's DAX 30 gained 0.34 per cent to 5,926.13 points and in Paris the CAC 40 index increased 0.16 per cent to 5,146.19.

The DJ Euro Stoxx 50 index of leading eurozone shares won 0.29 per cent to 3,816.51 points. The euro stood at $1.2700.

Japanese share prices closed 1.22 per cent higher as the market was heartened by another solid session on Wall Street and forecasts of strong earnings by domestic firms, dealers said.

US stocks had extended their rally on Wednesday as strong earnings from a big financial firm kept sentiment upbeat and oil prices remained near six-month lows.

In London on Thursday, water utility company Kelda led the FTSE 100 higher, soaring 3.70 per cent to 841.5 pence after its smaller rival AWG confirmed reports it had received a preliminary takeover approach from an unnamed suitor.

German industrial conglomerate Man jumped 3.86 per cent to 62.44 euros in Frankfurt after the Financial Times said the group is to offer nearly 9.5 billion euros (12 billion dollars), mainly in cash, for Swedish truck maker Scania.

MAN would offer about 440 kronor per Scania share and hoped to announce a deal next week, the newspaper said, quoting people familiar with the negotiations.

In earlier Asian trading, the Tokyo Stock Exchange's benchmark Nikkei-225 index rose closed up 1.22 per cent at 15,942.39 points.

Hong Kong's key Hang Seng Index fell 0.15 per cent to 17,183.45 points as investors locked in profits after gains over the last two days, dealers said.

In New York on Thursday, the Dow Jones Industrial Average gained 0.39 per cent at 11,543.32 points -- the highest level since May 10 -- and the Nasdaq composite increased 0.53 per cent to 2,227.67, the best close since May 16.

The broad-market Standard and Poor's 500 index added 0.38 per cent to 1,318.07 points.

The gains marked the fourth straight winning session for the main stock indexes and left the blue-chip Dow index less than 200 points from its all-time closing high.

A strong earnings report from Wall Street investment firm Lehman Brothers set a positive tone for the market, which has shown relief over the recent retreat in commodity prices, especially oil.—AFP