December 05, 2006	Tuesday	Ziqa'ad 13, 1427

LONDON, Dec 4: European stock markets were broadly higher on Monday, as investors focused on the food and construction sectors amid takeover activity. London’s FTSE 100 index of leading shares rose 0.21 per cent to 6,033.90 points in late morning deals, in Frankfurt the DAX 30 climbed 0.18 per cent to reach 6,252.67 points, while the Paris CAC 40 slid 0.15 per cent to 5,246.41 points.

The DJ Euro Stoxx 50 index of eurozone blue chip shares advanced 0.20 per cent to 3,939.95 points. The euro stood at 1.3312 dollars.

European stock markets had closed lower on Friday, after data in the United States showed that industrial activity contracted in November for the first time in more than three years.

Wall Street shares also ended down as the data raised fears that the US economic slowdown may be deepening, dealers said.

European investors meanwhile got the chance to chew over takeover news.

In London, the share price in British food group RHM soared 30.63 per cent to 355 pence after the company said it had agreed to a 1.2-billion-pound (1.8-billion-euro, 2.4-billion-dollar) takeover by British rival Premier Foods.

The deal brings together some of Britain's best-known food brands, including Premier's Ambrosia custard and RHM's Mr Kipling cakes.

Premier gained 3.62 per cent to 279 pence. Both companies are listed on London's second-tier FTSE 250 index.

On the FTSE 100 leading share index, Vodafone was among the early leaders, winning 1.51 per cent to 134.5 pence, after broker Credit Suisse upgraded its rating on the mobile phone group to “outperform” from “neutral”.

In Paris, where the CAC 40 index was the only major European market to show a loss, French building materials group Lafarge fell 0.65 per cent to 107.6 euros after announcing it had agreed to sell its roofing business to private equity fund PAI Partners for $3.2 billion.

Shares in Lafarge had initially risen after the announcement. In New York on Friday, the Dow Jones Industrial Average closed down 0.23pc at 12,194.13 points.

The technology-laden Nasdaq composite finished 0.76-per cent lower at 2,413.21 points and the broad-market Standard and Poor's 500 index sank 0.28 per cent at 1,396.71.—AFP