European stock markets rise supported by telecos after KKR’s offer for Telecom Italia

The graph of the German DAX stock index on the Frankfurt Stock Exchange, Germany, November 17, 2021. REUTERS / Personal

Nov 22 (Reuters) – European stocks rose on Monday, driven by telecom stocks, as shares in Telecom Italia soared 20% following a $ 12 billion offer from US fund KKR to take the largest group off the stock market. phone from Italy.

The pan-European STOXX 600 index was up 0.3% at 0828 GMT, reversing Friday’s declines after Austria was re-locked by COVID-19, and neighboring Germany warned it could follow suit.

Stocks in the telecommunications sector rose 0.9% thanks to the boost of Telecom Italia shares, which rose 21.3%, to their highest level since June.

Norway’s Telenor rose 1.9% after agreeing to merge its telecommunications subsidiary with Thai group Charoen Pokphand in a transaction valued at about $ 8.61 billion.

The European benchmark index recorded its first weekly decline in seven weeks on Friday due to concerns about the impact of possible new measures and lockdowns by COVID-19 following the recent increase in infections, which affected cyclical sectors in the stock market like automakers and banks.

Renault SA added 0.4% after signing a second supply agreement with lithium developer Vulcan Energy Resources.

For its part, the manufacturer of wind turbines Vestas fell 1.4% after reporting that it suffered a cyber attack that affected its computer systems and compromised the data of the Danish company.

(Reporting by Anisha Sircar in Bengaluru; Edited by Shailesh Kuber; translated by Tomás Cobos)

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