LONDON, Sept 26: Europe’s main stock markets jumped higher on Wednesday thanks to takeover talk in the banking, travel and stock exchange sectors, dealers said.

In London, the FTSE 100 index of leading shares soared 1.01 per cent to 6,461.80 points nearing the half-way stage.

Frankfurt’s DAX 30 gained 0.44 per cent to 7,803.43 points and in Paris the CAC 40 added 0.75 per cent to 5,683.97.

The DJ Euro Stoxx 50 index won 0.68 per cent to 4,358.24 points.

The euro stood at $1.4125 after striking a record high $1.4162 on US economic concerns.

But Wall Street shares ended mostly higher Tuesday as investors shrugged off weak reports on consumer confidence and home resales and warnings from some major retailers.

Japanese share prices rose Wednesday on hopes of solid corporate earnings and an end to recent political uncertainty with a new government now in place, dealers said.

In Europe, the financials were in favour after troubled British bank Northern Rock revealed late Tuesday that it had been in takeover talks with several parties.

Northern Rock shares rebounded 7.60 per cent to 175.5 pence on Wednesday.

The stock was also boosted after Northern Rock cancelled its shareholder dividend -- making the crisis-hit group more attractive to any potential bidder, dealers said.

In Madrid, Spanish newspaper Expansion reported Wednesday that French airline Air France-KLM was preparing a takeover offer for Spanish peer Iberia with several Spanish partners.

Expansion, which did not cite its sources, said Air France-KLM would team up with investment company Torreal and publishing and communication group Planeta to launch an offer.

In Madrid trade, Iberia shares added 5.23 percent to 3.42 euros, while Air France-KLM stock rose 0.36 percent to 25.04 euros in Paris.

In Stockholm, the trading of shares in the Nordic market operator OMX was suspended on Wednesday on the Stockholm stock exchange until further notice, a statement from the exchange said.

OMX looks set to become the centre of takeover bidding battle between Gulf rivals Dubai and Qatar.

Dubai market operator Borse Dubai and US group Nasdaq came to an agreement to acquire OMX jointly, but a state-owned Qatari investment fund has bought 9.98 percent of the group and urged OMX shareholders “to take no action” on the Nasdaq/Borse Dubai offer.

However, Nasdaq and Borse Dubai said Wednesday that they have secured almost half of the Nordic stock market operator.

In US deals on Tuesday, the Dow Jones Industrial Average rose 0.14 per cent to close at 13,778.65 and the tech-heavy Nasdaq gained 0.58 per cent at 2,683.45 points.

The broad-market Standard and Poor’s 500 index ended flat, edging down 0.03 per cent to 1,517.22.—AFP