STOCKS NEWS EUROPE-Italcementi rises on short-covering

Shares in Italian cement maker Italcementi (ITAI.MI) gain 5.8 percent on short-covering after a plan to take over its Paris-listed unit, Ciments Francais (CMFP.PA) was abandoned.

"Some investors were long on Ciments Francais and short on Italcementi and now that the deal is over they have to close the position, a sort of short covering," a Milan-based analyst says.

The companies said in a statement on Saturday that conditions for the proposed merger had not been met, citing "excessive" requests by a group of U.S note-holders. [ID:nLR497871]

Analysts viewed the merger as positive for Italcementi, with an earnings-per-share accretion of more than 5 percent in 2010.

Ciments Francais share fall more than 8 percent. If the merger went through the French company would have paid a one-off dividend.

Reuters Messaging rm://danilo.masoni.thomsonreuters.com@reuters.net