Bouygues and Iliad lead European shares down from highs

lunes 7 de abril de 2014 10:49 GYT

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

* Bouygues, Iliad fall; Numericable spikes on SFR deal

* Raiffeisen slips as Ukraine tensions simmer (Adds detail, quotes, updates prices)

By Alistair Smout

LONDON, April 7 (Reuters) - European equities retreated on Monday after a three-week rally, led down by French companies Iliad and Bouygues on expectations that a failed acquisition bid by Bouygues would hurt the earnings of both.

Bouygues fell 5.4 percent to 29.17 euros ($39.94) and Iliad dropped 5 percent after Numericable won a bid to acquire Vivendi's SFR telecom unit. Numericable shares spiked 15 percent.

Iliad investors were disappointed because Iliad had agreed to buy the Bouygues mobile network and some spectrum if Bouygues's bid for SFR succeeded. Iliad's decline was the biggest on the STOXX Europe 600 Technology index , which overall fell 1.9 percent.

Bouygues had been up 12.9 percent on the year, compared with a rise in the Euro STOXX 50 of 3.9 percent.

"We believe that the recent share price outperformance was due to possibility of this transaction going ahead," Olivia Peters, analyst at RBC Capital Markets, said in a note. "We estimate that Bouygues is now worth 27 euros per share, having stripped out the positive impact of the potential merger."   Continuación...