Europe close: Stocks end mixed despite deluge of M&A news

European shares finished on a mixed note on Monday despite takeovers dominating the news at the start of the week, with private equity outfit Apollo active on two fronts.

The pan-European Stoxx 600 index drifted lower by 0.02% to 466.81, alongside dips for the most of the main regional indices.

Spain's Ibex 35 was the exception, adding 0.17% to 9,378.50.

Euro/dollar was knocked lower by 0.73% to 1.0912 by comments out of ECB governing council member Martins Kazaks who left the door open to a downshift at the May meeting to a 25 basis point pace of interest rate hike.

Worth noting, some analysts were closely watching the latest US banking sector results for clues as to the risk and length of any potential tightening of credit conditions in the US economy.

"Cautious optimism is the Monday motivation mantra, as stronger US corporate news and signs of consumer resilience help to mask ongoing worries about the knock-on effect of higher interest rates. Although Wall Street closed lower on Friday, stocks in Asia eked out gains and European indices are set to edge up again,” said Hargreaves Lansdown analyst Susannah Streeter.

“But worries about how many rate hikes could still be in the sights of the Federal Reserve are still bubbling away in the face of growing consumer confidence and higher inflation expectations and could erupt back up to the surface.”

In equity news, many of the biggest moves had to do with mergers and acquisitions.

Shares in online unguent seller THG soared confirmed it has received a highly preliminary and non-binding indicative takeover proposal from Apollo Global Management.

Oil and gas engineering firm Wood Group gained more than 6% after the company decided to engage with Apollo for a firm offer for its last buyout price of 240 pence per share.

Network International leapt 20% after announcing that it had received a non-binding £2.1bn offer from CVC Capital Partners and Francisco Partners.

Shares in IDS gained nearly 7% after the Communication Workers Union and Royal Mail management reached an agreement in principle aimed at ending a long-running strike over pay.

“The walk-outs have put the group into a precarious position in terms of liquidity. It’s delayed the group’s attempt to re-size operations in the face of falling letter and parcel volumes and has meant the group will only have limited breathing room when it comes to its loan agreements,” said HL's Streeter.

Shares in videogame maker Rovio surged 18% by after Japan's Sega agreed to launch a €706m offer for the Angry Birds maker.