Frankfurt

The market was boosted by Siemens shares amid the company's restructuring.

The Dax closed 107.26 points higher at 5051.63.

Traders said merger news also buoyed sentiment as shares reacted positively to a report that energy group Exxon is in talks to buy rival Mobil.

Siemens announced more restructuring for its problem-ridden semiconductors unit.

The company is merging its Munich-based subsidiary Osram - a leading lamp maker - into its semiconductors business to form a joint venture for optoelectronic semiconductors.

Siemens intends to list its semiconductors business on the stock market in 2000.

Allianz also traded higher as investors anticipated healthy premium income data.

Paris

The market added to recent gains, driven higher by a rally in oil shares on the back of the Exxon- Mobil tie-up report and by strong interest in auto shares amid an improving economic outlook.

The Cac 40 index closed 65.69 points higher at 3915.53.

Oil groups Total and Elf-Aquitaine rose following a report in the Financial Times that energy giant Exxon is in talks to buy rival Mobil.

Investors were already beginning to favour the shares again after Total Chairman Thierry Desmarest told a French newspaper last week that the firm's third-quarter earnings declined significantly less than its foreign competitors - suggesting French oil companies are weathering the enduring slump in oil prices better than the rest of the sector.

Auto sector shares also helped the broad market's rally as investors returned to the sector after snubbing it during the bear market of September and October.