EDF, banks lift European stocks in early trade

European shares rose in early trade on Wednesday, as investors reacted positively to news that Warren Buffett's Berkshire Hathaway will invest $5 billion in Goldman Sachs.
By 0709 GMT, the FTSEurofirst 300 index of top European shares was up 0.5 percent at 1,114.47 points. The benchmark closed 1.6 percent lower on Tuesday and is down 26 percent so far this year.
Banks were one of the top weighted gainers on the index, with BNP Paribas, Credit Agricole, Dexia, Fortis and Societe Generale rising between 1.5 and 4.2 percent.
"Buffett's legendary status as a value investor gives the bulls reason for optimism, as some will see his move as a sign to call the bottom of the recent declines," said Chris Hossain senior sales manager at ODL Securities.
"M&A seems to be temporarily in fashion on this side of the Atlantic too, with EDF confirming that they have launched a bid for British Energy," he said.
French utility EDF rose 4.7 percent. The company said it had launched a 12.5 billion pound ($23.14 billion) agreed takeover bid on power producer British Energy, helping to secure Britain's nuclear future.
EDF, the world's biggest maker of nuclear energy, said on Wednesday it offered to pay 774 pence per British Energy share.
British Energy shares were up more than 6 percent.
But investors remained cautious in picking stocks as the Bush administration's push for quick congressional approval of a $700 billion bailout for financial firms hit a wall of opposition on Tuesday among senators who said the plan puts taxpayers at excessive risk.
U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke both warned that financial market turmoil has grown in severity and posed a threat to the broader economy that won't ease until confidence is restored.
Across Europe, Britain's FTSE rose 0.2 percent, Germany's DAX gained 0.5 percent and France's CAC rose 0.4 percent.