LONDON, June 28: European stock markets mostly fell on Wednesday owing to fears of higher global interest rates, after losses in Tokyo and overnight on Wall Street, but London was buoyed by takeover news, dealers said.

The US Federal Reserve was widely tipped to increase American borrowing costs on Thursday to 5.25 per cent to keep inflation in check -- but investors are worried about additional hikes and the potential impact on economic growth.

On Wednesday, London's FTSE 100 index of leading shares gained 0.19 per cent to 5,663.20 points.

Frankfurt's DAX 30 index, meanwhile, slid 0.24 per cent to 5,446.13 points and in Paris the CAC 40 shed 0.27 per cent to 4,758.43 points.

The DJ Euro Stoxx 50 index of leading eurozone shares lost 0.23 per cent to 3,498.91 points.

The euro stood at 1.2571 dollars.

US stocks had skidded lower on Tuesday amid fresh jitters about a tough message from the Fed, set to open a two-day meeting on rates later Wednesday.

Japanese shares tumbled Wednesday, mirroring Wall Street's declines.

Investors in Paris and Frankfurt focussed also on news concerning European aerospace group EADS.

DaimlerChrysler chief Dieter Zetsche said that changes have to happen” at EADS in an interview with the Wall Street Journal Europe published Wednesday.

And the share price of EMI rocketed by 9.34 per cent to 310.25 pence, after hitting as high as 311 pence. London's second tier FTSE 250 index, on which EMI shares are traded, was showing a loss of 0.05 per cent at 9,194.80 points.

The British music group revealed it has rejected a takeover offer from US rival Warner Music worth 320 pence per share or 2.52 billion pounds (3.65 billion euros, $4.58-billion).

EMI has meanwhile bid 31 dollars per share or 4.6 billion dollars for its US rival -- but this has also been snubbed.

Warner shares had closed at 27.23 dollars on Tuesday in New York.—AFP