European Stocks to Watch: Arriva

Shares in Britain's Arriva jumped 7.9 percent Tuesday on news the transport company won a contract to run the country's biggest rail franchise, Cross Country.

Arriva overcame competition from Richard Branson and Stagecoach's Virgin Rail, which currently operates the network.

The franchise would generate over 600 million pounds ($1.2 billion) a year in revenue, including around 1 billion pounds ($2 billion) of government subsidies spread across its eight-year lifetime from November, according to Arriva's calculations.

Unilever (Up 1.9 percent) Shares in the food producer gained due to speculation from traders the sector was due for further consolidation, following Danone's $17 billion bid for Numico Monday, Reuters reported.

Enia (Up 6.7 percent) Shares in the Italian regional utility soared on their first day of trading following its initial public offering Monday, which the company said was well oversubscribed.

Gamesa (Up 3.3 percent) the Spanish wind turbine maker gained on an upgrade from Morgan Stanley, following a review of European wind power sector.