European Closing Update: Wall Street Lifts Europe - TheStreet

LONDON -- The gains on Wall Street managed to rescue the U.K.'s stock markets from a dismal day that started with ISP

Freeserve's

(FREE)

announcement that its takeover talks with potential suitors, including Germany's

T-Online

, had failed.

The

FTSE 100

turned a 22-point loss into a gain of 13.7, or 0.2%, to close at 6,405.2, while the

Techmark

ended the session off the day's bottom levels at 3,415.7, down just 26.4.

Freeserve slid 77p, or 16.8%, to 362 ($5.43) as parent company

Dixons

confirmed reports that it has not been able to offload its 80% holding in the U.K.'s largest Internet service provider and portal. Worse, full-year results ended April 29 showed Freeserve incurred a pretax loss for the period of

22.9 million ($34.8 million) compared with a loss last year of

1.5 million, which was slightly above most analysts' expectations. Revenue for the year was

19.6 million up from

2.7 million. T-Online, on the other hand, was up 0.60 euros, or 1.7%, at 36.95 in late afternoon trade.

Gainers on Monday included financial stocks on the theory that interest rates in the U.K have peaked.

Barclays

(BCS) - Get Report

climbed 41p, or 2.6%, to

16.06,

Lloyds TSB

ended 26.5p better, or 4.4%, at 629 and

Abbey National

rose 11p, or 1.5%, to 762.

Telecom and cable stocks also did better, aided by an announcement that Dutch-based cable company

United Pan-European Communications

(UPCOY)

has secured a 25% stake in

Telewest Communications

(TWSTY)

. Telewest closed 25p higher, or 9.1%, at 299.

Elsewhere,

Energis

(ENGSY)

reversed an initial loss to finish 40p higher, or 1.8%, at

27.85 and

Vodafone AirTouch

(VOD) - Get Report

managed to turn a 6p loss into a gain of 2p, or 0.6%, at 297.

Finally,

EMI

put paid to speculation of a

6 billion counter-bid led by the German media conglomerate

Bertelsmann

when its shareholders voted overwhelmingly for the proposed merger with

Warner Music

. EMI ended up 27 1/2p, or 4.4%, at 658.

Europe's other major stock markets ended mixed, with the

CAC 40

in Paris closing up 40.9, or 0.6%, at 6,586.3. Late in the German trading session, the

Xetra Dax

in Frankfurt was up 47.4, or 0.7%, at 7,027.8 and the Neuer Markt's tech-heavy

Nemax 50

index was down 53.6, or 0.9%, at 6,206.9.

German blue-chip tech shares were mixed and volatile, with

Siemens

(SMWAY)

erasing early gains to fall 0.34 euros, or 0.21%, to 158.96 ($148.80) and

Epcos

(EPC) - Get Report

slashed early losses to rise 2.21 euro, or 1.8%, to 125.21.

DaimlerChrysler

(DCX)

was down 0.22 euros, or 0.4%, at 56.03, failing to hold onto gains after announcing an alliance with Korean carmaker

Hyundai

.

Commerzbank

(CRZBY)

jumped 1.03 euros, or 2.8%, to 38.72 after a report that the bank's Spanish and Italian partners were considering a takeover should merger talks with

Dresdner Bank

(DRSDY)

fail. Dresdner was up 0.45 euros, or 1.1%, at 42.60.

Major European telcos ended mixed, with

Telefonica

(TEF) - Get Report

down 0.50 euros, or 2.4%, at 20.55 and

France Telecom

(FTE)

up 3.00 euros, or 1.9%, at 163.50.

Deutsche Telekom

(DT) - Get Report

was 0.27 euros higher, or 0.4%, at 63.77.