* Pan-European index falls 0.4 percent
* Syngenta up 8 pct on reported takeover approach
* Ferragamo drops after weak results, Enel up
By Danilo Masoni
MILAN, Nov 13 (Reuters) - European shares fell on Friday, extending losses amid expectations of a U.S. rate increase next month but with the declines capped by a takeover approach for Syngenta and positive earnings updates.
Syngenta rallied 8 percent after Bloomberg reported that China National Chemical Corp was in talks to buy the world’s largest agrichemical company but its initial offer of nearly $42 billion was rejected.
“The news about Syngenta is a sign that the recovery in Europe is under way,” Enrico Vaccari, fund manager at Italy’s Consultinvest, said. “The market is still hostage to what’s happening in the United States with the Fed. A rate increase is getting closer and some investors are cautious but the overall mood in Europe remains positive.”
The pan-European FTSEurofirst 300 index fell 0.44 percent, and was set for its steepest weekly fall since early September, while the Euro STOXX 50 was down 0.37 percent.
Bouygues rose 2.9 percent after the French conglomerate confirmed its full-year targets after robust construction activity abroad and improving trends at its telecoms arm lifted its quarterly operating profit.
A European broker the overall numbers were reassuring as the operating result was good even though revenues missed expectations.
Enel rose 1.6 percent as Italy’s biggest utility reaffirmed full-year targets after nine-month core profits rose 4.9 percent.
The overall earnings picture in Europe remained mixed, however.
Ferragamo fell more than 5 percent as the luxury goods maker described market expectations on 2015 earnings as challenging after it reported soft third-quarter results.
Spain’s ACS was the steepest faller on the FTSEurofirst, dropping 3.9 percent after sales and core earnings at the construction and engineering company missed expectations.
Today’s European research round-up RCH/EUROPE (Reporting by Danilo Masoni; editing by John Stonestreet)