European shares end up in choppy trade

European stocks closed higher in volatile trade yesterday, with takeover speculation boosting UK drugmaker Astrazeneca and Vinci among other stocks, but interest rate worries persisted after a US inflation report.

French construction and infrastructure group Vinci rallied eight per cent on speculation that environmental services group Veolia Environnement was likely to bid for the group. Veolia said it would issue a statement later in the day and its shares ended eight per cent lower. European aerospace group EADS plunged 26 per cent after saying, late on Tuesday, that it expected delays in the planned deliveries of the A380 superjumbo.

The FTSEurofirst 300 index rose 0.2 per cent to a provisional close of 1,241.2 points, off a seven-month intra-day low and paring a two per cent fall struck in the previous session.

Bayer jumped seven per cent after it won control of Schering for an increased price as German rival Merck bowed out and sold its stake to Bayer. The parent of European planemaker Airbus suffered the worst stock market rout in its history yesterday after the disclosure of fresh delays to its flagship A380 airliner stirred a growing investor and airline revolt.

Shares in aerospace group EADS fell as much as 34 per cent and closed down 26 per cent at €18.73, their lowest in over two years, after it announced a six-month delay to many deliveries and warned of profit shortfalls from next year.