LONDON, April 20: Europe's main stock markets rebounded strongly on Friday following two days of losses, as fervent takeover activity struck the pharmaceutical and banking sectors.

In early afternoon trading, London's FTSE 100 index of leading shares was showing a rise of 0.77 per cent at 6,490.20 points. Frankfurt's DAX 30 jumped 1.38 per cent to 7,341.95 points and in Paris the CAC 40 index climbed 1.54 per cent to 5,918.81.

The euro stood at $1.3605, remaining within sight of its all-time high point of 1.3666.

The share prices of most leading European companies had fallen over Wednesday and Thursday, hit by expectations of increased interest rates in the eurozone and Britain. However, they rebounded Friday on takeover news.

In London, Europe's biggest pharmacy chain Alliance Boots surged 8.15 per cent to 1,135 pence, topping the FTSE 100, as a cross-Atlantic bidding war erupted for the British group.

US and British private equity groups on Friday launched rival cash bids approaching 11.0 billion pounds (16.2 billion euros, 22.04 billion dollars).

A takeover backed by either Terra Firma or Kohlberg Kravis Roberts (KKR) would represent Europe's biggest buyout by a private equity firm.

A consortium headed by British group Terra Firma tabled an indicative bid worth 10.78 billion pounds for British company Alliance Boots.

The offer trumped an improved bid by US group KKR which the Alliance Boots board had accepted earlier Friday.

KKR, which is joined in its takeover by the executive deputy chairman of Alliance Boots, Stefano Pessina, offered 10.6 billion pounds.

In Paris, meanwhile, French bank Societe Generale rocketed 9.06 per cent to 158.0 euros, and headed the CAC 40, on rumours of plans to merge with French rival BNP Paribas, dealers said. BNP Paribas jumped 4.76 per cent to 87.19 euros. The other US share gauges failed to keep pace, however.—AFP