European indices are down, IWG and EDP stocks rose on news about M&A deals

LONDON, May 14 (Reuters) – European stock indices declined at the beginning of trading on Monday after substantial growth in the last few weeks, although news of mergers and acquisitions (M&A) triggered a revival in stock markets, pushing up shares of the British IWG and the Portuguese EDP.

The papers of oil companies were the leaders of the fall due to the decline in oil prices, which receded from long-term highs with the growth of drilling activity in the US, and against the signs of resistance of Europe and Asia to the US sanctions against Iran.

The index of oil and gas sector STOXX 600 to 11.00 MSC fell by 0.4 percent, while the pan-European index lost 0.1 percent.

IWG shares jumped 20 percent after the British company, which provides office rental services, said it received offers to take over from three competing companies.

The price of EDP securities rose by 10 percent, as China’s state-owned energy company China Three Gorges offered to buy shares worth $ 10.8 billion, hoping to bring its stake in the Portuguese company to the control.

Papers of the Netherlands bank ABN Amro, reporting on the decrease in net profit in the first quarter, fell by 4.8 percent.

(Helen Reed, translated by Vera Sosenkova, editor Anton Kolodyazhny)