* FTSEurofirst 300 rises 0.4 pct
* EDF, British Energy gain on takeover bid news
* Banks gain, Warren Buffett's investment plan helps
By Atul Prakash
LONDON, Sept 24 (Reuters) - European shares rose early on
Wednesday, helped by EDF's <EDF.PA> agreed bid for British
Energy <BGY.L> and news that Warren Buffett's Berkshire Hathaway
Inc will invest $5 billion in U.S. Goldman Sachs <GS.N>.
By 0846 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.4 percent at 1,113.30 points after
rising as high as 1,116.45. The benchmark closed 1.6 percent
lower on Tuesday and is down about 26 percent so far this year.
A move by central banks to inject money into the financial
system also lifted sentiment.
The U.S. Federal Reserve moved for the second time in 24
hours to keep the wheels of the financial world turning, acting
in concert with Australia and Scandinavia to supply money
markets with $30 billion in funds. []
The European Central Bank, the Bank of England, the Bank of
Japan and Australia's central bank have also once again injected
billions of dollars into their banking systems to stop banks
from hoarding cash.
Banks were some of the top weighted gainers on the index,
with BNP Paribas <BNPP.PA>, Credit Agricole <CAGR.PA>, Societe
Generale <SOGN.PA> and Dexia <DEXI.BR> rising between 0.3 and
3.3 percent.
In a big boost for Goldman, investor Buffett is adding the
Wall Street bank to a portfolio of investments at Berkshire that
includes large stakes in a handful of major U.S. commercial
banks. []
"Buffett's legendary status as a value investor gives the
bulls reason for optimism, as some will see his move as a sign
to call the bottom of the recent declines," said Chris Hossain,
senior sales manager at ODL Securities.
"M&A seems to be temporarily in fashion on this side of the
Atlantic too, with EDF confirming that they have launched a bid
for British Energy," he said.
French utility EDF <EDF.PA> rose 5.4 percent. The company
launched a 12.5 billion pound ($23.14 billion) agreed takeover
bid on power producer British Energy <BGY.L>, in a move designed
to help to secure Britain's nuclear future. []
EDF, the world's biggest maker of nuclear energy, said on
Wednesday it offered to pay 774 pence per British Energy share.
British Energy shares were up more than 6 percent.
Across Europe, Britain's FTSE <> was up 0.1 percent,
Germany's DAX <> gained 0.2 percent and France's CAC
<> was up 0.1 percent.
CAUTIOUS TRADE
But investors remained cautious in picking stocks as the
Bush administration's push for quick congressional approval of a
$700 billion bailout for financial firms hit a wall of
opposition on Tuesday among senators who said the plan puts
taxpayers at excessive risk.[]
U.S. Treasury Secretary Henry Paulson and Federal Reserve
Chairman Ben Bernanke both warned that financial market turmoil
has grown in severity and posed a threat to the broader economy
that won't ease until confidence is restored.
In Europe, German corporate sentiment deteriorated by more
than expected in September to its lowest level since May 2005 as
firms became less confident after turmoil in financial markets,
Munich-based Ifo economic research institute said.
Commodity stocks fell despite a rise in crude and metals
prices. Anglo American <AAL.L>, Vedanta Resources <VED.L>,
Lonmin <LMI.L>, Xstrata <XTA.L>, Antofagasta <ANTO.L> fell
between 0.3 and 3.1 percnet.
BP <BP.L>, Royal Dutch Shell <RDSa.L>, gas producer BG Group
<BG.L> and Tullow Oil <TLW.L> shed between 0.1 and 2.6 percent.
Shares in Arcandor <AROG.DE> rose 8.6 percent after the
German retail and tourism group said it had agreed a financing
concept with lead banks and credit insurers to obtain necessary
credit lines.
Arcandor also reiterated it has no plans to sell its stake
in travel company Thomas Cook <TCG.L>. [].
(Editing by Sue Thomas)
