June 29 (Bloomberg) -- European stocks recovered earlier losses as shares of Linde Group, BASF AG and Royal Dutch Shell Plc advanced.

The Dow Jones Stoxx 600 Index was little changed, adding less than 0.1 percent to 391.78 as of 2:25 p.m. in London. The gauge has climbed 4.7 percent this quarter, heading for its fourth consecutive gain, on speculation companies will keep increasing profit and takeovers will rise. The index fell as much as 0.5 percent earlier today.

National benchmarks increased in 12 of the 18 western European markets. Germany's DAX added 0.5 percent, and France's CAC 40 gained 0.2 percent. The U.K.'s FTSE 100 lost less than 0.1 percent.

Linde, the world's largest maker of industrial gases, gained 1.3 percent to 89.18 euros, on speculation about a combination with chemical company BASF and as investors turned to less risky stocks in response to a recent slump in the German market.

``I don't think speculation about BASF is reasonable unless BASF wants to form a conglomerate,'' said Harald Gruber, a Dusseldorf-based analyst at WestLB AG with a ``buy'' rating on Linde. ``Investors are also probably turning to more defensive stocks and Linde is perfect for that.''

BASF climbed 1.6 percent to 96.32 euros.

Shell, Europe's largest oil company, advanced 1.1 percent to 2,026 pence. Total SA, the region's biggest refiner, gained 1.1 percent to 59.97 euros.

Crude oil for August delivery was at $70.25 a barrel, up 68 cents, in after-hours electronic trading on the New York Mercantile Exchange. The contract rose 60 cents, or 0.9 percent, to $69.57 yesterday, the highest close since Aug. 31.

Stocks pared earlier losses after a report showed consumer spending in the U.S. rose less than expected in May and the Federal Reserve's preferred inflation gauge cooled.

To contact the reporters on this story: Adria Cimino in Paris at acimino1@bloomberg.net; Alexis Xydias in London at axydias@bloomberg.net.

Last Updated: June 29, 2007 09:30 EDT