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* STOXX 600 up 0.4 pct
* Wolseley hits near 10-yr high on strong H1
* EDP gains on plan to buy out renewables subsidiary
* Dufry rises on media report HNA seeks stake
* Booker dips as Tesco takeover under fire
By Helen Reid
LONDON, March 28 European shares rose on
Tuesday, boosted by strong results and deal-making across the
region, recovering from the previous session's sentiment-fuelled
The pan-European STOXX 600 index was up 0.3
percent, with deals in focus as rumours of stake sales moved
individual stocks, while criticism of the Tesco takeover dented
Basic resource stocks led gains, up 0.8 percent
after suffering their worst daily losses in more than four
months on Monday.
Wolseley was the top European gainer, up 6.3 percent
and hitting almost a decade high, after posting a 25 percent
rise in profit for its first half, driven by strong growth in
its main market, the United States.
Portuguese oil company EDP rose 4.2 percent after
it said it would buy the rest of its renewable energy subsidiary
Portugal's largest company also agreed the sale of its
Spanish gas distribution network Naturgas to Nature Investments,
a special purpose vehicle owned by a consortium of institutional
EDPR jumped 9.4 percent on the news, helping Portugal's
stock index outperform European peers, up 2.2 percent.
Dufry, the Swiss airport retailer, gained 3.5
percent after a report said Chinese conglomerate HNA was in
talks to buy a stake, a move which would extend Dufry's reach in
Banco Popular was up 3 percent, the top gainer
among banks, after a Spanish newspaper report said the bank's
new head Emilio Saracho was in talks to sell the lender's
property portfolio and a stake to Libra Group.
Neither party said it would comment on market rumours.
Credit Agricole, meanwhile, rose 2.8 percent, to
the top of France's blue-chip index after Barclays
switched its preference to it from Societe Generale.
Among the few fallers in early trading, Recordati
was the worst-performing, down 2.4 percent after Goldman Sachs
cut its rating on the stock to "sell".
The Italian pharmaceuticals company's premium to peers is
excessive, Goldman analysts said, given a slightly more risky
research and development profile due to early-stage clinical
partnerships, and their belief that mergers and acquisitions
could be less pronounced ahead.
Recordati plans around 40 percent of sales growth to come
from reinvestment in M&A in 2017-2019. But Goldman said the
company's market cap of 6.6 billion euros made it harder for
bolt-on acquisitions to move the needle.
Wholesaler Booker was also among top fallers, down
1.9 percent after two major Tesco shareholders opposed
a $4.7 billion deal by the retailer to take it over, saying it
would destroy value.
Tesco's CEO said he was "completely committed" to the deal.
(Editing by Ed Osmond)