Gas Natural, which still showed an interest in acquiring Endesa and failed in a hostile bid earlier this year, gained 5.5%. Also receiving a boost from the moves in Spain was EDP, power generator in Portugal. Its shares gained 4.4%.

Hennes & Mauritz, the Swedish fashion retailer, gained 4.5% after it reported a forecast-beating rise in third-quarter pre-tax profit, boosted by a 5% rise in like-for-like sales.

Decliners

E.On wasn't performing so well, down 1.7% after raising its offer for Endesa. French insurer CNP Assurances fell 5.6% after its 16.6% rise in first-half net profit failed to impress.

Corporate news

Aer Lingus, the Irish airline, debuted on the Dublin bourse on Wednesday after its initial public offering was nearly four times oversubscribed. The stock was priced at 2.20 euros, the lower end of the pricing range, but in early trade it stood at 2.39 euros.

Oil and gold

Oil prices rose Wednesday amid lingering uncertainty about OPEC production plans. By mid-afternoon Wednesday, light, sweet crude for November delivery had rebounded 35 cents to $61.36 in on the NYME. November Brent crude on London ICE futures exchange rose 14 cents Wednesday to $60.26 a barrel. Gold traded in London at $595.10, up from $591.10 late Tuesday.

Currencies

The U.S. dollar was mostly higher against other major currencies in European trading Wednesday morning. The euro bought $1.2692, up from $1.2691 late Tuesday in New York. The British pound traded at $1.8889, down from $1.8949. The dollar bought 117.29 Japanese yen, up from 117.10.