* STOXX 600 rises hesitantly
* ACS gains after Atlantia confirms talks over Abertis
* Abertis shares down 3.8 pct
* Countrywide sinks 20 pct(Updates prices, adds detail)
By Helen Reid
The pan-European STOXX 600 rose 0.3 percent by 0930GMT, with defensive sectors leading the way while oil andmaterials stocks weighed amid signs the
Merger and acquisition news drove big stock moves in
Spanish construction firm ACS rose to the top ofthe index, up 9.3 percent after reports it was in talks with
Atlantia, which confirmed preliminary talks with ACS overAbertis, gained 3.8 percent, while Abertis fell 3.9 percent.
Shares in Hochtief, which had also bid forAbertis, rose 4.8 percent.
"It's positive news since instead of a bidding war therewill be a division of assets and we'll get a fairer price andmaybe better synergies," said Stefano Fabiani, fund manager at
Another
Renault shares fell to the bottom of
The stock had touched its highest since Dec 2015 onWednesday after Reuters reported Nissan was in talks to buy thestake.
Earnings took their toll on some stocks.
French supermarket Casino dropped 5.8 percentafter its results disappointed investors. Thegrocer said profit grew over 10 percent in
A Reuters report that Amazon.com is preparing tosell electronics directly into
Hugo Boss shares fell 4.9 percent after theGerman fashion house struck a more cautious tone on profit as itkept up investment in revamping stores and its website.
"There is likely to be some disappointment that improvingsales momentum is still not dropping through to EBITDA, with themidpoint of FY18 guidance 5 percent below consensus," said UBSanalysts.
A trader said the results set a worrying tone for the yeargiven the stock's recent negative performance. "Same story asfor most retailers as intensifying competition shows no sign ofabating," he said.
Boskalis Westminster sank 10.6 percent, the worstSTOXX 600 performer, after the construction and engineering firmreported full-year earnings and said it would be a "challenge"to match 2017 results.
Axel Springer sank 10 percent after resultstriggered profit taking.
While auto and supplier stocks continued tounderperform, having been the worst-hit by fears the