* FTSEurofirst 300 index closes 1.4 percent higher
* Cadbury soars after rejects Kraft approach
* All major sectors higher
By Brian Gorman
LONDON, Sept 7 (Reuters) - European shares closed higher on
Monday, with British confectionery group Cadbury <CBRY.L>
soaring 38 percent following a 10.2 billion pound ($16.7
billion) bid approach from U.S. company Kraft Foods <KFT.N>.
The pan-European FTSEurofirst 300 <> index of top
shares rose 1.4 percent to 975.90 points, just 0.3 percent away
from an 11-month closing high.
The European benchmark index has risen more than 51 percent
since it hit a lifetime low of March 9 as investor confidence
about prospects of economic recovery have grown.
All major sectors rose on Monday, with food companies among
the most notable gainers.
Britain's Cadbury soared 37.9 percent after turning down the
cash-and-shares offer from North America's biggest food group,
which it tipped to come back with a higher bid. []
"Positive sentiment from Friday's close on Wall Street and
bid speculation on Cadbury are igniting things a little bit,"
said Philippe Gijsels, senior equity strategist at Fortis Banks.
Other analysts said the market lacked direction with Wall
Street closed for the Labor Day holiday.
Volumes were 70.6 percent of the 90-day average.
"Everybody is cautious, and positioned for a downturn, but
you need a trigger. The trend for the moment is sideways," said
Giuseppe-Guido Amato, strategist at Lang & Schwarz. "Last week,
we had good indicators, but the market couldn't go up."
The food sector received another boost from an upbeat
trading statement at Associated British Foods <ABF.L>, up 4.1
percent. The company was able to point to strong trading at its
sugar business, as well as its Primark discount clothing chain.
[]
Whitbread <WTB.L>, Britain's biggest hotel operator, surged
18 percent after it said full-year profit would beat analysts'
expectations, even as it reported a decline in sales.
[]
The rise took Whitbread's market capitalisation to more than
2.1 billion pounds and this may be enough to see it re-enter the
FTSE 100, which is going through its quarterly reshuffle, based
on values at the close on Tuesday.
FINANCIALS RISE
The heavyweight financial sector also boosted the index.
Swiss Re <RUKN.VX> rose 3.4 percent after saying reinsurance
prices were rising overall and it was well positioned for the
January 2010 renewals season, with a considerably strengthened
capital base. []
Other insurers to rise included Aegon <AEGN.AS>, Aviva
<AV.L>, AXA <AXAF.PA>, and Legal & General <LGEN.L>, up between
2.3 and 3.5 percent.
Banks to gain included Barclays <BARC.L>, Credit Suisse
<CSGN.VX>, HSBC <HSBA.L> and UniCredit <CRDI.MI>, up between 1
and 2.4 percent.
Spain's Telefonica <TEF.MC> rose 2.1 percent after the
telecoms company said on Sunday it had reached a deal with China
Unicom <0762.HK> whereby each would buy $1 billion worth of the
other's shares as part of a strategic alliance. []
Across Europe, the FTSE 100 <> index rose 1.7 percent
to its highest close in more than 11 months. Germany's DAX
<> and France's CAC 40 <> both rose 1.5 percent.
The market got support after Group of 20 finance ministers
and central bankers said they would not remove economic stimulus
until the global recovery was well established. []
Standard Life Investments advised investors to "stay heavy"
in the UK as the market was supported by favourable valuations,
but said "stay light" in Europe ex-UK as "the region remains
vulnerable to a continued slowdown in world trade growth and
weaker earnings valuations".
(Additional reporting by Joanne Frearson; Editing by John
Stonestreet)
