MILAN, June 26 (Reuters) – European shares got off to a firm
start to the week on Monday as banks rallied after Italy reached
a deal on two failed regional banks and consumer bellwether
Nestle hit a record high after becoming the next target of
activist investor Third Point.
Italy began winding up two failed regional banks on Sunday
in a deal that could cost Rome up to 17 billion euros and will
leave the lenders’ good assets in the hands of Intesa Sanpaolo.
Intesa shares rose 3.6 percent while the euro zone
bank index rose 1.2 percent.
Gains in bank stocks helped the pan-European STOXX 600
and the euro zone blue chip indexes rise
both 0.7 percent, while UK’s FTSE added 0.6 percent.
Nestle led gainers in the STOXX, up 4.1 percent.
Activist investor Daniel Loeb unveiled a stake of more than 1
percent on Sunday, urging the group to improve its margins, buy
back stock and shed non-core businesses.
Gains in Nestle also gave a lift to sector peers such as
Unilever and Diageo sending the European food and beverage index
up more than 2 percent and on track for its best day
Stronger oil prices also propped up the energy sector, the
year’s worst performing this year, with majors such as BP
, Total leading the charge.
Underscoring the broadly upbeat mood across markets,
safe-haven utilities were the only sector in the red in early
(Reporting by Danilo Masoni, Editing by Vikram Subhedar)