950818

French equities

end a bit higher

PARIS: French shares ended slightly higher on the dollar's strength, dealers said, but the market was held back by weakness in financial shares and in shares of Rhone-Poulenc after its U.S. subsidiary launched a hostile takeover bid.

CAC-40 index closed up 4.29, or 0.22 percent, at 1,971.56

CAC-40 Aug futures 1,983 vs 1,981 at Thursday's close

Of CAC-40 stocks, 22 higher, 15 lower, three unchanged

Broader SBF 120 index up 0.28 at 1,339.39

Volume was a heavy 4.32 billion francs

Rhone-Poulenc (-5.40/108.60) closed down but off oits lows on turnover of 3.16 million shares.

Takeover target Fisons rejected the bid as inadequate, raising the possibility that a bidding war might break out and push up the price, which analysts in France said was already high. The company said its 1.7 billion stg offer price would not affect earnings. But "if it had to pay more, it would obviously hit earnings," one analyst said.

Financials weaker on concerns about their earnings prospects. Cie Bancaire, Paribas, UAP finished lower.

Carrefour up further on optimism about its prospects stirred by recent announcement of a capital gain.

Chargeurs fell after two investment firms lowered their recommendation on the stock from 'neutral' to 'sell' after the group released its second-quarter sales, fund managers said.

Synthelabo (+12.10/297.90) rose after Rhone's bid for Fisons. Speculation that parent L'Oreal (+20/1,330) may sell the pharmaceuticals unit have been recurrent in the market.-Reuter