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Tech stocks lead European shares higher on M&A boost

Reuters - UK Focus

PARIS, Dec 19 (Reuters) - European stocks climbed early on Friday, with French information technology services firm Atos SE (Other OTC: AEXAF - news) leading a rally in tech stocks after unveiling a deal to buy Xerox Corp (Swiss: XRX.SW - news) 's IT outsourcing arm.

Shares (Berlin: DI6.BE - news) in Atos (Paris: FR0000051732 - news) rose 6 percent, leading gains in the STOXX Europe 600 Technology sector, which was up 1.1 percent at 0814 GMT.

The FTSEurofirst 300 index of top European shares was up 0.7 percent at 1,366.26 points, adding to a 3 percent rally on Thursday.

Air France-KLM (Other OTC: AFLYY - news) bucked the trend, tumbling 7.3 percent after the airline issued its third profit warning in six months, cutting its 2014 earnings goal by 200 million euros as higher-than-expected costs from a recent pilot strike added to weaker unit revenues. (Reporting by Blaise Robinson; Editing by Francesco Canepa)