July 13, 2007	Friday	Jamadi-us-Sani 27, 1428

LONDON, July 12: Europe's main stock markets held steady on Thursday after recent heavy losses, as investors looked to miner Rio Tinto's mammoth 38.1-billion-dollar takeover for Alcan, dealers said.

They added that sentiment was dampened by the euro striking another record high against the dollar, which is seen as negative for European exporters because their goods become more expensive on international markets.

London's FTSE 100 index of leading shares slid 0.13 per cent to 6,606.40 points, in Paris the CAC 40 eased 0.01 per cent to 6,000.31, while Frankfurt's DAX 30 index added 0.01 per cent to 7,899.56.

The DJ Euro Stoxx 50 index of leading eurozone shares slipped 0.09 per cent to 4,443.59 points.

The euro hit a record 1.3794 dollars on Thursday as the European single currency was boosted by US economic concerns and favourable interest rate differentials, dealers said.

European equities have fallen heavily over the past two days as investors fretted over the troubled US housing sector and rising European currency levels, dealers said.

As consolidation in the booming metals sector continues, Rio Tinto and Alcan said in a joint statement they would combine to form the world's largest aluminium company, to be named Rio Tinto Alcan and based in Montreal.

In London on Thursday, however, Rio Tinto shares plunged 3.01 per cent to 3,873 pence.

This is almost certainly a knock-out bid, and I'll be surprised if Alcoa comes back with a counter offer, Teather and Greenwood mining analyst Martin Potts said.—AFP