European stocks advanced, snapping a two-day decline, as merger and acquisition activity outweighed concern that central banks will taper stimulus measures.
Kabel Deutschland Holding AG jumped 7.75% after Vodafone Group Plc
confirmed that it approached the German company about a takeover.
British Sky Broadcasting Group Plc rose 1.7% as analysts said News Corp.
may make another offer for the company. Severn Trent Plc tumbled after a
consortium of investors dropped their bid for the water utility.
The benchmark Stoxx Europe 600 Index gained 0.3% to 292.69. The
gauge has lost 5.8% since May 22 amid speculation the Federal Reserve
will taper its bond-buying program that helped drive the measure to its
highest level since June 2008.
“I’ve been waiting for M&A for so long; companies have strong
balance sheets so that they have the wherewithal to do it, but it’s
whether they have the confidence,” experts said. “I would expect to see
more activity in the coming months.”
Germany’s top court continues its two-day hearing to address the
European Central Bank’s Outright Monetary Transactions program and the
European Stability Mechanism. The ECB’s top two German officials
yesterday gave opposing evidence at the Federal Constitutional Court in
Karlsruhe as judges consider the legality of the OMT bond-buying
program.
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