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May 9 (Reuters) - European stocks were muted on
Thursday, as investors took a breather after recent gains and
awaited the Bank of England's policy decision later in the day,
while shares of Spanish bank Sabadell jumped after rival BBVA's
hostile takeover bid.
The pan-European STOXX 600 edged 0.1% lower by 0720
GMT, after notching record-closing highs for two straight days.
Automobiles was the worst hit sector, down 1.2%,
dragged by a 5.5% drop in Mercedes-Benz.
Spanish bank Sabadell jumped 5.5% after rival BBVA
presented a 12.23 billion euro takeover bid directly
to shareholders, even though the former's board already rejected
the proposal. BBVA shares were down 5.4%.
Belgian pharmaceutical firm lost 7.8% following
first-quarter earnings.
Italian payments group Nexi jumped 6.6% after a
larger-than-forecast rise in first-quarter core profit.
BE Semiconductor Industries climbed 5.1% after
announcing it received order for 26 hybrid bonding systems.
The BoE is set to announce its policy decision during the
day, expected to hold rates steady and likely take another step
towards a rate cut, but will probably be cautious about
signalling an imminent move.