LONDON, July 4: Europen’s main stock markets rose on Wednesday on the back of takeover talk in the hotels sector, sparked by a huge private equity-backed deal for US group Hilton Hotels Corporation.

Trading remained cautious, however, ahead of Thursday's interest rate decisions from the European Central Bank and the Bank of England, and with US markets shut on Wednesday for the Independence Day holiday.

In European trade, London's FTSE 100 index of leading shares rose 0.20 per cent to 6,653.20 points, Frankfurt's DAX 30 index gained 0.43 per cent to 8,085.27 points and in Paris the CAC 40 climbed 0.33 per cent to 6,089.60.

The DJ Euro Stoxx 50 index of leading eurozone shares increased by 0.33 per cent to 4,527.79 points.

Late on Tuesday, Hilton Hotels Corporation revealed it was to be bought by private equity giant Blackstone Group in an all-cash deal worth 26 billion dollars (19 billion euros).

The merger and acquisitions theme is very prominent again following the announced deal in the US overnight, said HSBC equity strategist Robert Parkes on Wednesday, in reference to the Hilton buyout.

That's put the hotel/leisure sector in play. The news has sparked speculation aabout similar deals in Europe on Wednesday.

In Paris, shares in French hospitality group Accor rocketed 7.20 per cent to 69.57 euros.

Inter Continental Hotels Group saw its share price jump 5.21 per cent to 1,323.50 pence in London. And in Madrid, Spanish peer NH Hoteles saw its stock rally 3.42 per cent to 16.61 euros.—AFP