European shares retreat from highs, techs slip

lunes 7 de abril de 2014 07:57 GYT

* FTSEurofirst 300 falls 0.8 pct, off 5 1/2-yr high

* Tech shares slip; "momentum" stocks seen overvalued

* Bouygues, Iliad fall; Numericable spikes on SFR deal

By Atul Prakash

LONDON, April 7 (Reuters) - European equities retreated on Monday after a three-week rally, with technology shares falling the most on concern they had advanced too far, too fast and a correction was due.

The stock market also came under pressure from a drop of 5.4 percent in Bouygues and 5.7 percent in Iliad, after Numericable won a bid to acquire Vivendi's SFR telecom unit. Numericable shares spiked 15 percent.

Iliad investors were disappointed because the company stood to benefit if Bouygues's bid for SFR succeeded. It had agreed to buy Bouygues' mobile network and some spectrum.

The FTSEurofirst 300 index of top European shares was down 0.9 percent at 1,341.03 points by 1112 GMT, slipping from a 5 1/2-year high on Friday. A 1.7 percent drop in the STOXX Europe 600 Technology index led the decline.

Tech shares followed Friday's decline in U.S. momentum stocks, which are typically high-growth companies, mostly in the tech and biotech sectors. Those shares led the 2013 rally, and investors were anxious about how much further they might fall.   Continuación...