largest general insurer, despite sources close to the situation saying rumours that American International Group was set to bid were untrue. In Italy Banca Nazionale del Lavoro shares surged 4.5 percent on speculation that a capital increase could set the stage for a battle to control the bank. Back on the earnings front, mm02 rallied 5.2 percent after raising its UK revenue forecasts for the second time in three months and announcing its maiden dividend. Vodafone, which doubled its dividend on Tuesday, rose 1.2 percent. But British retailers were weak after electrical goods seller Dixons warned sales growth had slowed in recent weeks and that demand for big ticket items might wane. Dixons shares shed 5 percent. In New York the Dow Jones industrial average was up 1 percent at 10,595, while better than expected earnings from computer maker Hewlett-Packard helped the tech-laced Nasdaq Composite Index gain 1.6 percent to 2,111.
