(by Geck Finn)

High oil prices, weak earnings and losses on Wall Street moved European equity markets lower.

The FTSE Eurotop 300 was down 0.1 per cent at 970.66, while Frankfurt’s Xetra Dax was 0.2 per cent lower at 3,837.46. The CAC-40 in Paris was flat at 3,610.51, while London’s FTSE 100 crept 0.2 per cent higher to 4,346.4.

Deutsche Börse, the German stock exchange operator, said it had invited the Swiss Stock Exchange (SWX) to discuss the possibility of a merger in a move it said would "expand our existing co-operation". The bourse is already an equal partner with SWX in Eurex, the derivatives trading platform. The stock was down 0.2 per cent at €40.31.

Bayer, the German chemicals and drugs manufacturer, was down 1.2 per cent at €21.99 after it said it was to purchase the over-the-counter drugs division of Roche, the Swiss pharmaceuticals group, for €2.38bn. Bayer said the deal, which includes a stake in a joint venture in the US, would benefit earnings from 2006 onwards.

The chief executive of British Airways, Rod Eddington, said the company was considering a takeover of Aer Lingus, the Irish state-controlled carrier, although it planned no move until the Irish government made clear its intentions for the company. The shares were up 0.6 per cent at 242p.

Ahold, the Dutch retail group, was the biggest percentage gainer, up 3.1 per cent to €6 after reaching an agreement to buy out Canica, its Norwegian partner, from a Swedish joint venture. Ahold said it planned to sell on half of Canica’s 20 per cent stake in ICA AB to ICA Forbendet Invest, but was unclear about costs or charges likely to be related to the deal.

Electrolux, the world’s biggest maker of electrical appliances, was down 0.4 per cent to SKr137.50 as JP Morgan lowered its price target on the stock following the company’s weaker-than-expected results last Friday.