May 4 (Bloomberg) -- European stocks rose for a fourth day after Reuters Group Plc and music company EMI Group Plc said they received takeover approaches.

``There are no safe havens'' from takeovers, said Justin Urquhart Stewart, who helps oversee about $3 billion as director of 7 Investment Management in London. ``Whether it's active investors or private equity firms, we are going to see more of these deals. It is overall very good for stocks.''

Reuters, the world's largest publicly traded provider of financial data, surged as much as 32 percent. EMI reached a three-month high. BHP Billiton Ltd. led the Dow Jones Stoxx 600 Basic Resources Index to the sharpest gain in seven weeks after Merrill Lynch & Co. said the world's biggest mining company could be broken up and sold for $201 billion. Hanson Plc advanced as Goldman, Sachs & Co. raised its recommendation on the stock after HeidelbergCement AG said it may bid for the company.

Deals in Europe have totaled more than $1 trillion so far this year, based on data compiled by Bloomberg News. Mergers and acquisitions reached a record $1.6 trillion in 2006.

``Takeover activity will accelerate in 2007,'' said Klaus Hagedorn, who manages about $850 million at Metzler Investment GmbH in Frankfurt. ``This will boost equity markets.''

The Stoxx 600 added 0.8 percent to 392.73 in London. The index has climbed 1.7 percent in a shortened, four-day week, the biggest gain since the period ended March 23. The Stoxx 50 advanced 0.6 percent, and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, rose 0.4 percent.

National Markets

National benchmarks advanced in all 17 western European markets that were open except for Austria and Ireland. The U.K.'s FTSE added 1 percent. France's CAC 40 increased 1.1 percent, while Germany's DAX added 0.5 percent. The Denmark bourse was closed for a public holiday.

European stocks closed at a 6 1/2-year high for a second straight day. Shares were buoyed yesterday by a report that showed U.S. worker productivity rose as labor costs eased. Today, the Labor Department said the world's biggest economy added the fewest jobs last month in two years, increasing chances the Federal Reserve will lower interest rates.

Reuters rallied 25 percent to 615.75 pence, reaching as high as 649.75 pence earlier, after saying it received a preliminary takeover approach from an unidentified suitor.

``The board of Reuters confirms it has received a preliminary approach from a third party which may or may not lead to an offer being made for Reuters,'' the company said.

Bid Speculation

The London-based company's shares rose before the statement on speculation it may receive an offer from Thomson Corp. Thomson Corp. is in talks to buy Reuters, the Toronto-based Globe and Mail reported, citing unidentified people close to the companies.

Thomson spokesman Jason Stewart would neither confirm nor deny the Globe and Mail report. Steve Clarke, a spokesman for Reuters, declined to comment beyond the company's statement.

Bloomberg LP, the parent company of Bloomberg News, competes with Reuters in selling news, information and trading systems to the financial services industry.

EMI climbed 8.2 percent to 246.25 pence. The company ``has received a number of preliminary indications of interest to acquire the company,'' London-based EMI said in a Regulatory News Service statement. It didn't identify potential bidders.

The Financial Times newspaper reported today that One Equity Partners LLC, the U.S. private-equity group affiliated to JPMorgan Chase & Co., expressed an interest in EMI in a deal that could value it at more than $6 billion.

Max Hohenberg, a spokesman for the buyout firm in Munich, declined to comment. EMI declined to comment beyond the statement, said Amanda Conroy, a spokeswoman for the company.

Media `In Fashion'

Shares of Wolters Kluwer NV, Europe's largest tax and legal publisher, jumped 3.6 percent to 23.67 euros on takeover speculation sparked by Reuters and EMI being approached.

``Media shares are definitely in fashion today, with EMI and Reuters, it's part of a regular review from investors to see where merger and acquisitions could happen,'' said Jorrit van Spaendonck, who helps oversee about $3 billion at SNS Asset Management in Den Bosch, the Netherlands, including shares in Amsterdam-based Wolters Kluwer and Reed Elsevier NV.

BHP Billiton climbed 4.6 percent to 1,218 pence. The mining company could be stripped and sold to provide a 34 percent return to any private equity groups that make a takeover bid, according to Merrill Lynch. Rio Tinto Group, the world's No. 3 mining company, gained 4.7 percent to 3,310 pence.

Nickel rose to records in London as the government of Western Australia said it will monitor a shipment in a probe that has curbed lead exports. Lead also rose to its highest ever.

Hanson, Altadis

Hanson, the world's largest supplier of crushed rock, advanced 4.4 percent to 1,070.5 pence. Goldman raised its recommendation for the shares to ``neutral'' from ``sell'' after HeidelbergCement, Germany' biggest cement maker, said yesterday it may bid for Hanson. London-based analysts including Ian Osburn name a ``takeover value'' of 1,033 pence per share for the company in a report published today.

Shares of Altadis SA rose 3.7 percent to 50.30 euros after CVC Capital Partners Ltd. and PAI Partners offered 12.8 billion euros for the Spanish maker of Gauloises cigarettes. The offer is 50 euros a share, Madrid-based Altadis said today in a regulatory filing. The Spanish company last month rejected an increased bid of 47 euros a share from Imperial Tobacco Group Plc.

``If M&A continues the way it has done in the first quarter, and we fully expect that to be the case, then 2007 will be the biggest year for M&A in history,'' said Ad van Tiggelen, who oversees about $55 billion as deputy head of equity investments at ING Investment Management in the Hague.

Tomkins, Tesco

Tomkins Plc, the U.K. maker of auto parts and building materials, climbed 13 percent 302.5 pence on revived speculation the company may receive a bid.

``With so much bid activity in the markets any stock linked to bid stories is performing as speculative funds are piling in,'' said Jawaid Afsar, a trader at Securequity Ltd. in Sheffield, England.

The Observer newspaper reported on April 30 an unidentified private equity firm is considering making a 350 pence-a-share offer for Tomkins, without citing anyone. Tomkins spokeswoman Clare Strange declined to comment today.

Tesco Plc, the U.K.'s largest supermarket chain, rose 2.2 percent to 473.75 pence. ABN Amro Holding NV raised its recommendation on the stock to ``buy'' from ``hold.''

``Tesco is creating significant value from its estate without hindering its operating model,'' London-based analysts including Justin Scarborough wrote in a report published today. ``We estimate 7.6 billion pounds ($15.1 billion) could be unlocked over the next four years.'' They boosted their price estimate 48 percent to 602 pence.

To contact the reporter on this story: Andreas Hippin in Frankfurt at ahippin@bloomberg.net.

Last Updated: May 4, 2007 12:08 EDT