(For a live blog on European stocks, type LIVE/ in an Eikon
* Swiss telecom co Sunrise hits record high on buyout offer
* Vaccine hopes, recovery optimism support wider sentiment
* Telecom stocks jump on Liberty-Sunrise deal offer
Aug 12 (Reuters) - Telecommunications stocks boosted
European bourses on Wednesday after a billion dollar takeover
offer for Switzerland's Sunrise Communications, while London's
FTSE 100 gained on bets of more stimulus after a collapse in
UK's quarterly economic output.
The pan-European STOXX 600 rose 0.3%, gaining for a
fourth straight session.
Sunrise Communications surged 26% to hit a record
high after Liberty Global launched a takeover offer
for the Swiss telecoms group in a deal valued at 6.8 billion
Swiss francs ($7.40 billion).
Shares in German telecoms investor Freenet,
Sunrise's largest shareholder, jumped 15.4%, while the broader
sector gained 1.6%.
"Consolidation between operators would be positive for the
industry as it would reduce competitive pressure on prices and
improve the return on capital," Domenico Ghilotti, an analyst at
Equita wrote in a note.
Meanwhile, London's FTSE 100 rose 0.6% as investors
focused on signs of a recovery in economic output in June,
shrugging off a record 20.4% plunge in the second quarter, the
largest contraction reported by any major economy.
June output grew by 8.7% from May, just above economists'
average expectation in a Reuters poll for an 8% rise.
"It's been widely expected that UK will be in a recession.
But the fact that May number was upgraded and the June number
was better than expectations, is offering a little bit of
encouragement," said Russ Mould, investment director at AJ Bell.
"Markets are more interested in debating the pace of the
Markets globally have rallied this week on the back of
improving data from China and Europe, signs of progress in
developing a COVID-19 vaccine and a fresh U.S. stimulus.
However, Wall Street indexes fell overnight on growing
uncertainty about a stalemate in Washington over the stimulus
Among other individual movers, Danish enzyme maker Novozymes
fell 5.8% after it issued a weaker profit outlook
than previously forecast.
European food-ordering firm Just Eat Takeaway.com NV
rose 3.9% after reporting higher revenue and underlying
profit for the first half of 2020.
British online fashion retailer ASOS jumped 7.2% as
it forecast full-year sales and profit significantly ahead of
(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun