European's benchmark index slipped 0.5% to 1,006.5, bringing its weekly gain to 1.3%.

The Stoxx 600 retreated 0.5% to 244.92, trimming this week's advance to 1.3%. The benchmark index for European equities has soared 55% since March 9, driving its valuation to more than 47 times reported earnings, the highest level in more than six years, according to weekly data

National benchmark indexes slipped in 11 of the 18 western European markets. Germany's DAX fell 0.5% and France's CAC 40 decreased 0.2%. The UK's FTSE 100 rose 0.2% as GlaxoSmithKline gained.

German stocks fell for the first time in four days after a rally in the benchmark DAX Index to an 11-month high left the measure valued at the most expensive level since December 2003.

Volkswagen AG sank to the lowest price in more than two years after the common shares' free float declined to 14.5%. Salzgitter AG slipped for a second day as metal prices dropped. BASF SE climbed to the highest level this month after the world's biggest chemical company said it's raising prices for some products. Deutsche Boerse AG gained for a second day as Equinet AG upgraded the shares.

The DAX Index dropped 0.5% to 5,703.83, trimming the weekly advance to 1.4%. A six-month rally has left the measure trading at about 48.7 times its companies reported earnings, according to weekly data compiled by Bloomberg. The broader HDAX Index lost 0.4% today.

A report today showed German producer prices rose for the first time in 11 months in August as energy costs increased. Prices gained 0.5% from a month earlier after falling 1.5% in July, the Federal Statistics Office in Wiesbaden said today. Economists forecast a 0.2% increase, according to the median of 24 estimates in a Bloomberg News survey.

Volkswagen, Europe's largest carmaker, retreated 6.7% to 113.22 Euros, the lowest close since June 2007. The common shares' free float was reduced from 20.08%, Deutsche Boerse said.

Salzgitter, Germany's second-largest steelmaker, fell 1.5% to 70.42 Euros as metal prices tumbled in London.

Steelmakers face a slow recovery from the worst slump in demand since World War II as industry struggles to get funding for capital investment, according to Rautaruukki Oyj Chief Executive Officer Sakari Tamminen.

BASF climbed 1.2% to 36.98 Euros as the chemical company said it's raising prices for some polyalcohols worldwide with immediate effect. Wacker Chemie AG advanced 5.4% to 104 Euros, the highest price in a year.

Deutsche Boerse rose 2.7% to 59.53 Euros as the operator of the Frankfurt bourse was upgraded to "accumulate" from "hold" at Equinet.

Munich Re added 1% to 104.99 Euros. Credit Suisse Group AG cited the world's biggest reinsurer as its preferred stock in the sector. Smaller rival Hannover Re rallied 6% to 32.50 Euros.

Arcandor AG slid 29% to 34 cents. The retailer's insolvency administrator is in talks with at least four potential investors who interested in acquiring the company's Primondo/Quelle catalog-sales unit, his spokesman said. Thomas Schulz, who speaks for insolvency administrator Klaus Hubert Goerg, declined to identify the potential buyers. He said the talks are "serious."

Metro AG, Germany's biggest retailer, sank 3.5% to 36.03 Euros, snapping a two-day gain.

Q-Cells SE surged 12% to 14.04 Euros, the steepest advance among stocks in the HDAX Index, after the producer of cells used in solar panels said it plans to start selling a new generation of more efficient cells next year. Separately, Q- Cells expects net debt at about 550 million Euros ($810 million) to 600 million Euros by the end of this year and its group liquidity position of 250 million Euros to 300 million Euros.

Solarworld AG rallied 6.8% to 17.50 Euros, the highest close in more than a month.

SAF-Holland SA surged 20% to 2.41 Euros after the supplier of parts for heavy-truck trailers said it's making progress in talks with banks on financing, and that a standstill agreement has been extended until Oct. 27.

France's CAC 40 Index slid 7.43, or 0.2%, to 3,827.84, paring this week's advance to 2.5%. The SBF 120 Index lost 0.2% today.

Argan added 28 cents, or 2.9%, to 10.10 Euros, gaining for a fourth day after the warehouse owner said it expects to report full-year rental income of 30 million Euros and operating cash flow of 26.7 million Euros. The company also said it won a contract from L'Oreal SA.

Mindscape sank 70 cents, or 9.7%, to 6.50 Euros, heading for the biggest drop in more than 18 months after the French video-game developer's first-half net loss widened to 6.14 million Euros from 661,000 Euros a year earlier.

Groupe Promeo advanced 4.60 Euros, or 26%, to 22.30, the first gain in three days, as the real- estate developer forecast a rise in full-year revenue.

Referencement.com lost 19.67 cents, or 5.4%, to 3.46 Euros, the biggest drop in two months. The electronic marketing company said it plans to raise 700,000 Euros selling 223,578 new shares at 3.18 Euros apiece. The share sale runs from Sept. 18 through Oct. 16.

Sodexo, the world's second-biggest catering company, dropped 42.5 cents, or 1%, to 41.32, the third drop this week, after Natixis Securities downgraded the shares to "reduce" from "add."

In Brussels the Bel 20 ended the week at 2,499.45, declines of 0.19% on the day.

Shares in ArcelorMittal fell 2.5% on Thursday, among the top decliners in Europe, with traders citing market talk the steelmaker may be considering a possible capital increase.

An ArcelorMittal spokesman declined to comment.

Four traders around Europe said there was talk that ArcelorMittal could launch a possible capital increase, but had no details on the size of the capital hike.

The shares were down 2.5% at 27.79 Euros, making them among the weakest in the FTSEurofirst 300, while the DJ Stoxx European basic resources index was virtually unchanged.

ArcelorMittal, which issued $3.2 billion of stock and $800 million of convertibles at the end of April, gave presentations to analysts on Wednesday.

Analysts understood deleveraging was no longer the company's number one priority and that it was considering possible acquisitions again, particularly in mining, and would increase capital expenditure with projects in Brazil and India.

Shares in Belgian bancassurer KBC rose to a 9-month high after Goldman Sachs initiates coverage of KBC with a 'Buy' rating and adds the stock to its Pan-Europe conviction list.

The stock gains as much as 7% to 34.45 Euros, against a 1.82% rise for the DJ STOXX European banking index .SX7P, and has tripled since mid-July.

The head of Compagnie du Bois Sauvage SA has been detained over alleged insider trading in Fortis and the company's shares have been suspended, the Belgian holding company said late on Thursday.

The company is under investigation over 3.6 million Fortis shares it sold for 19.5 million Euros ($28.4 million) on Oct. 3, just before the Netherlands announced the nationalisation of Fortis's Dutch operations, the first step in the group's carve-up.

Bois Sauvage chief Vincent Doumier was taken into custody on Thursday on charges of fraud and insider trading.

"The board of directors maintains full confidence in its chief executive and forcefully confirms that no offence was committed," the company said in a statement.

Chairman Guy Paquot would temporarily assume the role of chief executive, the company said.

The board had also asked the Belgian financial markets regulator to suspend trading in Bois Sauvage shares up to and including Monday.

Fortis shares, which had previously been regarded by many market participants as a safe investment, fell to below 1 Euro after the break-up from more than 5 Euros just before.

Belgian media have said the insider trading, if proven, could lead to a fine of 45 million Euros.

Fortis was carved up by the Dutch, Belgian and Luxembourg governments in October after an 11.2 billion Euro cash injection failed to calm investors.

The AEX in Amsterdam closed out the session Friday at 313.63, down marginally 0.08% for the session.

Shares in ING Group fell around heavily Tuesday after De Volkstrant reported that European Competition authorities are not currently prepared to approve a 22 billion Euro ($32.2 billion) guarantee from the Dutch government.

The newspaper reported that E.U. Competition Commissioner Neelie Kroes believes the Dutch government may have been too generous with the terms of its guarantee package and that ING may therefore have to pay a higher fee.

However, Kroes will give Dutch authorities more time to provide evidence that the deal was fair, the report said.

Shares of Dutch supermarket group Super de Boer surged 18.6% to 4.14 Euros in Amsterdam on Friday after the firm received a 4.20 Euro a share offer from privately-held rival Jumbo Holding.

Super de Boer's 57% shareholder Casino said that it will support the bid.

Ahold, which also operates supermarkets in the Netherlands, said that it isn't interested in buying the firm, Dow Jones Newswires reported. Ahold shares were up 0.9% in Amsterdam while Casino shares climbed 3.2% in Paris.

Vienna's ATX finished the week at 2,588.80, a drop og 0.94% on the day Friday.

Minority shareholders in Immoeast AG, the Austrian property developer that plans to merge with majority owner Immofinanz AG, will be offered control of the enlarged company in return for backing the transaction.

"There has to be a compelling commercial argument for the Immoeast shareholders to make sure they raise their hands when they have to vote on the merger," Eduard Zehetner, chief executive officer of both businesses, said in an interview. "The tricky part is how sweet to make the cake."

Immofinanz's biggest asset is its 55% stake in Immoeast, whose market value is almost three times bigger. Without that, Immofinanz's debt exceeds its assets by about 800 million Euros ($1.2 billion), Zehetner said Sept. 16 in Amsterdam. That would have to be reflected in the terms of any merger presented to investors, he said.

Zehetner, 58, is selling holdings of Immoeast and Immofinanz, Austria's largest property companies, after they reported record losses for fiscal 2009. Immofinanz amended its 2008 balance sheet, while Vienna prosecutors are investigating possible accounting fraud by former executives.

Immofinanz will have to buy the rest of Immoeast because any other transaction would be too complicated, Zehetner said. The CEO said he "hopes strongly" that the Vienna-based companies will combine in 2010.

Immoeast and Immofinanz are the best performers on the Vienna exchange this year, climbing more than eightfold and fivefold, respectively. Even so, shares of both are trading at less than a third of their highs reached in 2007. Together, the companies have a market value of about 4.4 billion Euros.

Zehetner replaced Karl Petrikovics as CEO of Immoeast in November and became Immofinanz's chief in March. He is trying to recoup 350 million Euros after Petrikovics arranged for Immoeast to invest 513 million Euros in a bond that the supervisory board didn't know about. Zehetner also plans to sell minority stakes in real-estate funds and closely held property companies.

Zehetner aims to reach two "conditional" agreements relating to the recovery of the 350 million Euros before Immoeast shareholders meet on Oct. 1 and Immofinanz investors convene a day later, he said.

One will be with Constantia Packaging BV, a closely held Dutch company, and will result in Immoeast getting 170 million Euros in cash, Immoeast shares and other assets including a stake in Austria Metall AG, Zehetner said.

"We could get the money by the end of the year or early next year," said Zehetner. "That will improve our cash position by as much as 220 million Euros."

The other agreement Zehetner is seeking is to buy Constantia Privatbank AG, a closely held bank. The bank had to be rescued by five Austrian lenders in October after depositors withdrew money on concern about its involvement in Immofinanz and Immoeast, which it used to manage.

Immoeast and Immofinanz have claims of 400 million Euros against Constantia Privatbank, Zehetner said.

Constantia Privatbank, Constantia Packaging and Immofinanz are in talks about a settlement, according to Manfred Waldenmair, a spokesman for the bank.

"There are numerous claims and counterclaims and opinions on the value of the claims differ considerably," he said. "A takeover of Constantia Privatbank by Immofinanz is a suggestion of Immofinanz. A decision on this won't be made until the end of the negotiations."

Alfred Autischer, a spokesman for Constantia Packaging, said he doesn't expect a settlement by October because several commercial and legal questions remain unresolved.

Vienna brewery Ottakringer is to buy back a 17-million-Euro stake from rival Brau-Union/Heineken, the company announced yesterday. Brau-Union acquired the 13.43% share in Ottakringer 11 years ago and was then taken over by Dutch firm Heineken in 2003.

Ottakringer chief Sigi Menz branded the deal "an Ottakringer holiday". The firm served free beer at its locations in Vienna and St. Pölten yesterday afternoon to celebrate the move.

The deal will see families that control Ottakringer through Ottakringer Holding AG take a 92% stake in the company.

The Wenckheim family will have an interest of 65%, the Menz family 15% and the Pfusterschmid and Trauttenberg families smaller stakes. The remaining eight% of shares will be held by small shareholders.

Ottakringer will receive 172,454 common shares and 4,370 preferred shares of its stock from Brau-Union/Heineken on Thursday.

The SMI in Zurich rounded out Friday's session at 6,325.15, up 0.12% for the session.

Switzerland's stock exchange is investigating UBS for possible breaches of rules regarding publication of price sensitive information and information on its board, it said on Friday. SIX Exchange Regulation said it had started the investigation into possible breaches of the ad hoc publicity directive -- used to regulate potentially price-sensitive information -- by UBS from 2007 to the end of 2008.

SIX Exchange Regulation, which monitors and enforces issuers' obligations for the SIX Swiss Exchange, is also looking into possible breaches of the corporate governance directive in connection with the UBS 2008 annual report.

UBS declined to comment.

Shares in UBS were trading 1.8% lower at 18.98 Swiss by 0820 GMT, underperforming the Dow Jones Stoxx European banks index which was 0.9% lower.

The exchange's corporate governance directive requires issuers to disclose important information on their board and senior management or to give substantial reasons why this information is not disclosed.

UBS, which is struggling to rebuild its reputation after a US government tax evasion probe and after chalking up huge losses in the credit crisis, revised its 2008 accounts twice, once in March and again in May.

A spokesman for the SIX Exchange declined to comment on whether that was the reason for the investigation, adding he could not give any further details.

In March, UBS said it had revised up its 2008 net loss by 1.2 billion francs to include a big US tax fine and more writedowns from the 19.7 billion francs it originally reported, already the biggest loss in Swiss corporate history.

The other additional charges that increased the 2008 loss related to the Swiss National Bank's (SNB) valuation of around $7.8 billion of securities not yet transferred to an SNB stability fund, dedicated to mopping up UBS's toxic assets.

In May, UBS restated its 2008 accounts again, raising its full year loss by a further 405 million Swiss francs to correct accounting errors. It also reduced equity and equity attributable to UBS shareholders by 269 million francs.

The investigatory proceedings will continue for an indefinite period, the SIX Exchange said.

"SIX Exchange will announce its findings, although no information will be provided while the proceedings are ongoing," it said.

The OMX in Stockholm closed the week Friday on 920.23, down 0.39% for the day.

Sweden's Swedbank AB Thursday said it plans to buy back up to 3 billion Swedish kronor ($435 million) in subordinated debt from investors as it strives to improve the quality of its capital.

It echoes moves by a growing list of banks that have recently bought back subordinated debt, often at discounts, as they look to take advantage of depressed market prices to reduce their outstanding debts.

In the second quarter, Swedish rival Skandinaviska Enskilda Banken AB (SEB-A.SK) booked a capital gain of SEK1.3 billion after buying back GBP400 million of subordinated debt at 75% of its par value.

Swedbank said it plans to call its outstanding subordinated debt due during 2010, including a $300 million Tier 1 bond due in March 2010. A final decision will be made before the call expiration date and is subject to approval by Sweden's Financial Supervisory Authority.

"It is Swedbank's view that the continued ability to support the bank's balance sheet should be secured by its core Tier 1 capital," the bank said.

Over the last year, Swedbank has increased its core Tier 1 ratio, which includes equity capital and retained earnings minus goodwill, by 1.3% to 9.8% at end-June. Its recently announced SEK15.1 billion rights issue - the bank's second in less than a year - would hike its core Tier 1 to a pro forma 12.1% as of June 30.

The bank said it currently doesn't plan to issue any new subordinated debt instruments.

Swedish telecom firm Tele2 set a new core profit target for its mobile operations on Thursday and lifted its sights for its Russian and Swedish units.

Tele2 said that its mobile operations on networks which it owns should have an EBITDA margin in the mid-30's% or higher over the long term.

Its two biggest markets, Sweden and Russia, had EBITDA margins of 32% and 40% respectively in the second quarter.

In Sweden, however, Tele2 said its margin would fall next year as the company looks to increase market share among premium customers.

Tele2's operations in France, Norway and Holland are on shared networks.

Tele2 also said it was considering options for Tele2 France.

Autoliv, the world's largest supplier of car airbags and seatbelts, Thursday increased its earnings forecasts for the rest of the year after better-than-expected sales in the third quarter due to a recovery in light-vehicle production.

The Swedish-American company, which supplies customers such as Ford, Volkswagen and General Motors, said full-year sales could reach nearly $4.9 billion despite an expected 25% drop in North American and West European light-vehicle production.

The company said its operating margin, excluding restructuring charges, is expected to be 4% for the third quarter of 2009, up from 1% to 3% forecast in July. Consolidated sales for the quarter are expected to decline by 15% to 20%, instead of 20% to 25%, provided current currency-exchange rates prevail. Organic sales are expected to decline by 10% to 15%.

Autoliv said it expects restructuring costs of $100 million. In July, Autoliv said that it expected restructuring costs for 2009 to exceed the $75 million it had announced previously without specifying a new amount. Despite this increase, Autoliv said it now believes that it could reach a break-even operating margin for the full year, including restructuring charges.

Autoliv said in December last year that it had cut 5,900 jobs, or 14% of its workforce, in a cost-cutting program initiated in July. The measures aimed to save $120 million in 2010 at an initial cost estimate of $75 million.

Copenhagen's OMX finished Friday at 337.04, absolutely flat on the day.

Denmark's third-largest bank, Sydbank, said on Tuesday its placement of 6.75 million new shares raised 877.5 million Danish crowns ($172.5 million).

The stock was priced at 130 crowns per share and sold to domestic and international institutional investors, Sydbank said in a statement.

The offering was at a discount of 5.3% to Monday's closing price of 137.25 crowns.

Danish online trading and investment bank Saxo Bank A/S Tuesday said it will acquire a 25% stake in Portugal's online financial group Banco Best as part of a deal that will also raise stakeholder Espirito Santo Financial Group S.A.'s ownership in Saxo to almost 5% from 2.5%.

After completing the transactions, which follow an initial agreement reached in January 2008, ESFG and its subsidiary Banco Espirito Santo S/A will together control about 10% of Saxo's share capital.

ESFG is a holding company that groups most of Banco Espirito Santo's financial holdings.

"ESFG has also agreed to sell shares to Saxo Bank representing 25% of the capital of Banco Best, of which BES Group is a majority shareholder," Saxo Bank said in a statement.

No financial details were given.

Additionally, Saxo and Banco Best have inked a deal to make subsystems of Banco Best's online platform of products and services available to Saxo, it said.

"The 25% stake of Portugal's leading online bank illustrates Saxo Bank's commitment to extending our products and services," said Saxo Bank co-Chief Executives Kim Fournais and Lars Seier Christensen in a statement.

Saxo aims for further expansion and consolidation of its undertakings, especially in asset management, the co-CEOs added.

Danisco A/S, the Nordic region's biggest food-ingredient maker, rose the most in four months in Copenhagen trading after it posted fiscal first quarter profit that beat analyst estimates and lifted full-year expectations.

Danisco rose as much as 10.9%, the biggest intraday jump since May 27, and gained 29.5 Kroner, or 10.6%, to 307.25 kroner. The shares have added 40% this year giving the company a market value of 14.4 billion kroner ($2.85 billion).

Danisco said growth was helped by its Cultures division, which makes microorganisms used for cheeses, and its US-based Genencor unit, which produces enzymes for biofuel. The company raised its net income forecast for the 12 months ending April 30 to "slightly above" 700 million kroner from 650 million kroner previously, and said cost plans are starting to work.

The OMX in Helsinki finished the week at 6,612.73, down 0.3% for Friday.

Waertsilae Oyj, whose motors propel one in three of the world's vessels, may cut jobs and output of ship engines further as the Finnish company braces for the unit's first decline in revenue for six years.

"Regardless of what happens, we will most probably see a decline in sales next year," Chief Executive Officer Ole Johansson said in an interview. "I don't believe anything could happen soon enough to change that overall assumption."

Management will decide later this year or early in 2010 whether to cut additional jobs, extending beyond the possible 450 announced in May, Johansson said. The unit generates one- third of the Helsinki-based company's 4.6 billion Euros ($6.7 billion) in total revenue.

Waertsilae's cutbacks mirror those in boat yards around the world as the shipbuilding industry bears the brunt of a slowdown in trade. A.P. Moeller-Maersk A/S and Frontline Ltd. are among container and tanker operators revising vessel orders as lease rates collapse. Ship power orders at Waertsilae, which also makes power plants, plunged 86% in the second quarter.

By July, about 800 million Euros iWaertsilae gained as much as 1.81 Euros, or 6.7%, to 29.03 Euros, the highest since May 11, and was up 6.5% as of 2:21 p.m. in Helsinki. The shares have increased 38% this year, valuing the company at 2.86 billion Euros.

Demand for Waertsilae's power plants and maintenance services is more robust and there are a "good number" of utility projects in negotiation or just awaiting financing, the CEO said. Those divisions will help cushion sales and profit during the current shipping slump, he said.

The chief executive predicted order levels for marine engines will remain low "for quite a while."

"Owners and shipyards alike will try to postpone the delivery of ships they have on order as they cannot see them being employed for any particular purpose right now," Johansson said in the interview at Waertsilae's Helsinki head office.

Members of the Organization of Petroleum Exporting Countries, accounting for about 40% of global oil supply, have cut output by 4% this year, according to Bloomberg estimates. Over the same period, the fleet of in-service crude oil carriers expanded 5.3%.

Waertsilae last year moved its ship-power unit's senior management to Shanghai as Asia became the heart of volume shipbuilding at the expense of European yards. Asian yards built 54% of the world's new vessels last year, while Europeans made 17%, according to data compiled by Waertsilae.

"The Asian shipbuilders, relatively speaking, will come out even stronger than before," Johansson said. "The post- crisis Waertsilae also needs to be different to sort of mirror this phenomenon."

Finnish lift maker Kone stuck to its 2009 outlook on Wednesday citing healthy demand in Asia and its services unit.

Chief executive Matti Alahuhta told a seminar the company expected 2009 sales growth of 2-5% and underlying earnings to rise to 570-595 million Euros ($837-874 million).

"Our outlook for this year is that the good development in the service market will continue, the level of modernisation will be at around last year's level, and the market for new equipment will weaken, but at a slower pace," Alahuhta said.

Alahuhta said Kone's services and modernisation businesses were developing favourably in China, and it was "quite confident" the European and North American modernisation markets would be flat year-on-year.

"The market share of Asia and Pacific is continuously growing ... which feeds our services business," he said.

He said cash flow at a record high of 371 million Euros in the January-June period was not a trend he expected to continue. "We do not forecast that the same tough pace will continue throughout the rest of the year."

Oil company Lotos, which is the owner of the ailing oil processing firm Lotos Jaslo, is looking for new revenue streams for its subsidiary. In order to put the company back on track it has signed an agreement with Finnish investor Eco-Stream concerning regeneration of waste vegetable oil.

No details of the agreement were, as of yet, officially disclosed.

"The construction of the waste vegetable oil regeneration plant will cost almost €30 million. The financing is to be ensured by the Finns. In addition we will both earmark zl.25 million on launching production. From the regenerated oils we will be producing bases for the production of grease oils, fuel oils and bituminous components," said a person engaged in the project.

The construction of the plant is to commence early next year and is to last 18 months. Production is planned for H2 of 2011. In the new Polish-Finnish venture, 60% of shares will belong to the Finnish investor.

The head of the Finnish steelmaker Rautaruukki was quoted as saying the industry faces a slow recovery from the recession.

'The freefall has stopped and demand has leveled off at pretty low levels compared to where we were,' CEO Sakari Tamminen, said in a interview with Bloomberg. 'We need to be prepared for a slow recovery.'

'The big question now is when will end-user demand develop and at what level the recovery will be when it takes place. Uncertainty in financing is still there and affecting especially investment decisions,' Tamminen added.

Oslo's OBX Bourse closed out Friday at 295.63, one of the few regional markets to make any gains, up 0.11% on the day.

Telenor expects to resume dividend payments for the full year 2010, which will be payable in 2011, the Norwegian telecom operator said in notes to investors published ahead of its capital markets day Tuesday.

The company said it has no capacity for any dividend payout for the full year 2009, and added there is little room for share buybacks in the mid-term.

Telenor said its funding position is healthy; it has committed credit lines of 26 billion Norwegian kroner ($4.4 billion) and uncommitted credit lines of NOK56 billion.

Indian operator Unitech Wireless, in which Telenor recently bought a majority stake, will get long-term financing in 2010, it added.

Nordic markets have been only moderately hurt by the economic recession, Telenor said.

Telenor expects mid-term revenue growth to be driven by Asia, and added that it expects capital expenditure as a proportion of sales to fall.

The boards of directors of Det norske oljeselskap ASA and Aker Exploration ASA have approved the merger plan that specifies the further merger process between the two companies.

On 24 August 2009, the boards of directors of Det norske oljeselskap ASA (DETNOR) and Aker Exploration ASA (AKX) entered into an integration agreement. On 16 September 2009, the companies' boards of directors entered into the merger plan which specifies the further merger process.

The agreed conversion ratio will remain as announced. i.e. DETNOR's shareholders will receive 82% of the shares of the merged company, while AKX's shareholders will receive 18%. No material amendments have been made to other announced terms of the merger. Hence, Det norske shareholders will receive 1.403328 shares in Aker Exploration for every share in Det norske.

The two companies will submit notice to extraordinary general meetings where the shareholders will be invited to vote for approval of the proposed merger. The general meetings will be held no later than a month after the merger plan is dispatched to the shareholders of the companies. The dispatch is expected to be done immediately. An information memorandum approved by Oslo Børs is aimed to be disclosed by week 40.

The merger is expected to be registered and completed within year 2009.The merged company will be named Det norske oljeselskap ASA. It is a premise for the merger that the shares of the merged company will resume trading on the Oslo Børs. Aker ASA will be the largest shareholder in the company, holding approximately 30% of its shares.

The merger between Det norske and Aker Exploration unites two Norwegian exploration companies that have each succeeded in building up sizeable licence portfolios on the Norwegian continental shelf over the past few years. The merged company will be the second largest oil company on the Norwegian continental shelf by a good margin in terms operatorships and exploration activity. The combined company will be operator for 32 licences and it will have a total of 70 licences in its portfolio.

The nomination committee of Det norske, assigned as nomination body for selection of the board of directors to the merged company pursuant to the integration agreement, proposes the following board members: Kjell Inge Røkke (chairman of the board), Berge Gerdt Larsen, Maria Moræus Hanssen, Hege Sjo and Kaare M. Gisvold.

Madrid's IBEX finished the week at 11,777.30, up just 0.05% for the session.

Debt rating agency Standard & Poors said it has cut its rating for hybrid capital instruments, which include preferential shares, issued by Spain's second largest savings bank Caja Madrid after running a stress test.

The agency cut Caja Madrid's rating to BB from BBB- citing concerns of dividend payment suspension on the instruments due to rising pressure on operating performance, especially in 2010.

The savings bank issued some 3 billion Euros ($4.39 billion) in preferential shares earlier this year.

Caja Madrid reported a nonperforming loan ratio of 5.6% at the end of June, compared with a 5.0% average for the savings bank sector.[

Spain's Inditex, Europe's largest clothing retailer, said Wednesday it would start selling its flagship Zara brand clothes over the Internet later this year in selected European markets.

"Zara will start online sales for the autumn/winter 2010 season. Initially the online sales will be launched in Spain, France, Germany, UK, Italy and Portugal, to be followed by the progressive rollout in all Zara markets," it said in a statement.

Inditex chief executive Pablo Isla called the move "an important strategic step" which was in line with the company's "constant daily search to offer the best service to clients worldwide."

The company experimented recently with Internet sales with its Zara home products.

Sweden's H&M, Europe?s second-largest clothing retailer, already sells its products online in Austria, Denmark, Finland, Germany, Norway, Sweden and the Netherlands while the Gap Inc., the largest US group, does the same in its home market.

Inditex's move comes at a time of declining retail sales in Spain, which accounts for about one-third of the company's sales, amid a rapid rise in unemployment.

The retailer, whose other brands include Massimo Dutti and Bershka, posted Wednesday a first-half net profit of 375 million Euros (548 million Dollars), an 8.0% decline over the same period last year.

Sales rose 7.0% to 4.86 billion Euros in the six months.

Inditex opened 166 outlets during the first half, taking the total to 4,430 in 73 countries, saying it maintained "rapid growth" in Asia where it is expanding in the fast-growing Chinese and Indian markets.

China is now home to more than 50 stores.

Travel-reservations company Amadeus IT Group SA is considering an initial public offering in what would be one of the biggest IPOs since the financial crisis hit markets, people familiar with the situation said.

The company, controlled by private-equity firms BC Partners and Cinven Group Ltd., has retained investment bank Rothschild as an adviser for a planned offering of a 30% stake in the company, these people said Thursday.

Founded in 1987 and based in Madrid, Amadeus is a technology provider to the travel industry. It is the biggest provider by number of airline bookings in the world, according to its Web site. Amadeus declined to comment.

Rothschild has invited several investment banks to help coordinate a potential initial public offering, said one banker who had received an invitation. Banks have until the middle of next week to make proposals on how much they believe they can place with investors in a listing.

No final decision has been made, and a listing wouldn't be carried out until next year, people close to the sellers said.

Amadeus would be the first and largest private-equity offering for well over a year, the last one being First Reserve Corp.'s $2.5 billion listing of Czech miner New World Resources in May 2008, according to Dealogic.

Amadeus was taken private four years ago in a €4.34 billion ($6.39 billion) takeover led by the two European buyout firms. They now control 52.76% of Amadeus.

One person said Amadeus could be valued as high as €8 billion, though others said that figure may be too high.

The company generated revenue of €2.86 billion in 2008, up 2.2% from a year earlier. Its travel bookings fell 2.1% to €526.6 million in the period, hurt by a slump in travel due to the global financial crisis. This trend continued into this year, with bookings down 9.1% on the year in the first quarter, according to Amadeus's last financial statement.

The PSI General in Lisbon closed Friday's session at 2,879.59, down 0.17%.

Shares in Portugal Telecom rose after a block portfolio readjustment of 62 million shares -- 6.9% of the company's share capital -- by one of its main shareholders, Banco Espirito Santo.

The operation was executed by Banco Espirito Santo's investment arm and seems to be related to an intra-group portfolio re-arrangement of the bank's stake in PT.

The block re-adjustment of the 62 million shares was done at 7.515 Euros per share.

Portugal's Attorney General's office is investigating allegations that the Angolan government paid €104 million to buy a shareholding in Portuguese bank Banif but never received any shares, officials have said.

Ambassador Jose Marcos Barrica, Angola's envoy to Lisbon, told the Lusa News Agency last week Portugal's prosecution service is investigating a complaint by the Luanda government that it never received any of Banif shares it paid for.

Luanda says it bought a 49% stake in the Madeira-based bank.

Stocks in Energias de Portugal rose to 12-month highs after Angolan state oil company Sonangol reaffirms its interest in acquiring a stake in the Portuguese utility.

"It's not just the Sonangol interest in buying the stake, but also the joint business opportunities that can open up," a dealer in Lisbon says.

Sonangol CEO Manuel Vicente said late on Wednesday that although there are currently no talks on the company buying a minority stake in EDP, the move "would be a possibility of major interest."

Italy's benchmark FTSE MIB Index fell 99.04, or 0.4%, to 23,483.87 in Milan. The gauge gained 1.9% this week.

Arnoldo Mondadori Editore added 7.5 cents, or 2.3%, to 3.37 Euros, the highest in more than seven months. Gruppo Banca Leonardo lifted its price estimate on the publisher controlled by Prime Minister Silvio Berlusconi to 3.9 Euros from 3.4 Euros. The brokerage, which kept a "buy" rating, expects Mondadori "to surprise positively on costs and thanks to important launches in the book division."

The brokerage also upgraded Caltagirone Editore SpA to "buy" from "underweight." Caltagirone Editore climbed 17 cents, or 8.4%, to 2.2 Euros.

Digital Multimedia Technologies soared 1.03 Euros, or 10%, to 11.1 Euros. UniCredit Markets & Investment Banking, which cited a two-day road show in London with the company, reiterated a "buy" recommendation on the Italian maker of television broadcasting infrastructure.

Enel advanced for an eighth session, adding 4.5 cents, or 1.1%, to 4.34 Euros. Italy's biggest utility was raised to "outperform" from "underperform" at Cheuvreux. The brokerage cited "better liquidity, easing refinancing risk and lower pressure from credit agencies."

Fiat declined 17.5 cents, or 1.9%, to 8.85 Euros, snapping a two-day gain. Kepler Capital Markets recommended reducing exposure to the automobiles & auto parts industry.

Pirelli & C. slid 0.9% to 37.75 cents.

Interpump advanced 21.5 cents, or 5.2%, to 4.33 Euros, extending gains of 10% yesterday. Exane BNP Paribas upgraded the world's biggest maker of high- performance pumps to "outperform" from "neutral," citing an "improved macro outlook" and the stock's underperformance.

Landi Renzo gained 10.25 cents, or 3.3%, to 3.25 Euros, after the Italian maker of injection systems for alternative fuels said in a statement that it signed a supply agreement with Bayerische Motoren Werke AG.

Luxottica rose for a fourth day, adding 36 cents, or 2%, to 18.06 Euros. The world's biggest maker of eyeglasses said it will distribute a dividend of 22 Euro cents a share, according to a statement after the closing of the market. The company also said it will start its buyback program on Sept. 21, the statement said.

Mediobanca added 28 cents, or 2.9%, to 10.05 Euros. Italy's biggest publicly traded investment bank posted a net loss of 37 million Euros in the fiscal fourth quarter ending June 30, compared with net income of 230 million Euros a year earlier, the Milan-based bank said. That beat the 44 million-Euro median estimate of eight analysts surveyed by Bloomberg. The bank said its planned capital increase will help the investment bank take advantage of growth opportunities.

RCS MediaGroup fell 3.8 cents, or 2.7%, to 1.39 Euros after gaining as much as 4.5%. Kepler Capital Markets reiterated a "reduce" rating, saying that "the only way out of the unsustainable debt would be a massive share capital increase."

Tiscali rose 21.5 cents, or 6.6%, to 3.49 Euros, the biggest gain in three weeks. The Italian phone and Internet company will begin its planned capital increase by Christmas, founder Renato Soru said. "A capital increase is always an opportunity for possible new investors," Chief Executive Officer Mario Rosso said today. "Let the market decide. I'm confident in the market."

Vincenzo Zucchi climbed 4.5 cents, or 8.2%, to 59.5 cents, after surging 22% yesterday. The Italian maker of household fabrics said it signed an agreement to refinance debt for 133 million Euros.

The Athex in Athens finished the week Friday at 2,555.37, up 0.31% for the session.

The chief executive of Greek gaming firm OPAP said on Friday he had turned down his appointment by Greece's outgoing conservative government to the International Monetary Fund (IMF) for political reasons.

Government sources told Reuters on Thursday that the CEO of Europe's biggest gambling company would be appointed at the IMF but in a bourse filing on Friday Christos Hadjiemmanuil said he was staying put.

"As we are in the middle of a pre-election period ... under the current circumstances, I am not in a position to accept my appointment," he said.

Greece will hold a snap parliamentary election on Oct. 4, with socialists maintaining a wide lead in polls.

Greek Coca-Cola Hellenic Bottling said on Friday it planned a recapitalisation which will result in a capital return of about 548 million Euros ($ 806 million) or 1.50 Euro per share to shareholders.

It said the record date for the transaction will be announced in due course.

"Given the company's strong cash generation and positive view of its free cash flow over the medium term, a capital return is the most appropriate way to return cash to shareholders in the current environment," said Chief Executive Doros Constantinou in a statement.

CCH, the world's second largest bottler of Coke drinks, said the recapitalisation would be financed through a combination of accumulated cash and new debt.

CCH's board endorsed the plan, the company said, citing favourable conditions in the debt capital markets and the potential to reduce the group's WACC (weighted average cost of capital) by improving capital structure.

An extraordinary shareholders meeting will take place Oct. 16 to approve the increase in the par value of the shares by an amount of about 548 million via a capitalisation of reserves.

National Bank of Greece, the country's largest lender, said it sold all its treasury stock for 11.03 million Euros.

The bank sold 515,199 shares at a price of 21.40 Euros each, management said in a statement.

"Accordingly, the bank no longer holds treasury stock," NBG said.

Beyond Greece, Athens-quoted National Bank (www.nbg.gr) has an established presence in Romania, Bulgaria, FYR Macedonia, Serbia, Albania, Turkey and Cyprus.

Greek shipping company Navios Maritime Partners LP said Thursday it plans to sell 2.8 million common shares in a public offering and use the proceeds to expand its fleet.

Navios will give underwriters the option to buy an additional 420,000 common shares to cover any overallotments.

Citi and JPMorgan are the book-running managers. S. Goldman Advisors LLC and DVB Capital Markets are co-managers.

The company currently has about 24.8 million common shares outstanding. In May, Navios sold 3.5 million common shares in a separate offering.