European shares closed lower on Monday with investors reacting to corporate earnings and acquisition deals rather than the positive trend set in Asian markets.
The pan-European Euro Stoxx 600 Index provisionally closed down 0.4 percent. Major bourses tipped into negative territory with the German DAX falling by 1.4 percent. Information technology firm SAP was a major laggard, weighing heavily on the German index and falling 4 percent, after reporting its full-year operating profit on Monday morning.
The Portuguese PSI 20 Index also saw some weakness. Shares of Portugal Telecom tanked around 20 percent with Reuters reporting market chatter of a potential share sale by Brazilian telecoms firm Oi.
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Shares of Dutch conglomerate Philips closed down 3.5 percent in early deals after the company reported a third-quarter loss.
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U.K. pharma group Shire saw its shares drop 1 percent after an announcement that its interim finance chief James Bowling was quitting to join Severn Trent.
Meanwhile, Bolloré - a French investment and industrial holding group - sank over 8 percent after making a bid to take control of French advertising firm Havas.
Nutreco shares also surged, up 39 percent, with an announcement that SHV Holdings is to purchase the processed food company for 2.69 billion euros ($3.43 billion). The two companies have made a conditional agreement on the deal.
Adidas shares climbed around 4 percent with a report in The Wall Street Journal on Monday that said a private investment group was looking to buy its Reebok brand.
On the data front, German producer prices for September were flat compared to the month before, but showed a yearly drop of 1.0 percent. Euro zone current account data showed that its surplus had narrowed slightly in August with a figure of 18.9 billion euros ($24.1 billion). This compares to an upwardly revised figure of 21.3 billion euros in July.
Italy's industrial orders were also released on Monday morning, showing a gain of 1.5 percent on the month.
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