Nov. 27 (Bloomberg) -- France's CAC 40 Index dropped for a fourth day as the dollar retreated against the euro. Luxury- goods group LVMH Moet Hennessy Louis Vuitton SA paced the decline. Lafarge SA retreated back to last week's levels.

The benchmark CAC 40 lost 80.81, or 1.5 percent, to 5308.65. The SBF 120 Index fell 1.5 percent to 3877.28.

The dollar's drop ``will lead to analysts adjusting their numbers in the euro zone down for earnings forecasts for the fourth quarter,'' said Gary Dugan, head of research and investment strategy at Barclays Wealth Management in London, which oversees $100 billion.

LVMH lost 2.35 euros, or 2.9 percent, to 79.55. Deutsche Bank AG analysts rated the company's shares a ``sell'' in new coverage. A recovery in Japanese consumption has stalled, while slower growth in the U.S. and China will hurt LVMH's cognac business, the brokerage said.

Lafarge slipped 2.5 euros, 2.3 percent, to 107.6. PAI Partners and LBO France, two Paris-based private-equity firms, are vying to purchase Lafarge SA's roof-tile unit for about 2 billion euros, according to three people familiar with the negotiations. Lafarge, the world's biggest maker of building materials, may announce the winner as soon as next week, said the people, who declined to be identified because the talks are confidential. Philippe Hardouin, a spokesman for Lafarge, declined to comment.

The following stocks rose or fell in Paris. Stock symbols are in parenthesis.

European Aeronautic, Defense & Space Co. (EAD FP), parent company of the Airbus SAS planemaker, lost 80 cents, or 3.4 percent, to 22.45 euros. Investors asked French prosecutors to widen an insider-trading probe at the Airbus parent to its two largest shareholders, DaimlerChrysler AG and Lagardere SCA. Separately, the French government intends to increase its stake in EADS after rejecting two private co-investors' plans to finance the Airbus A350, Boersen-Zeitung reported without saying where it obtained the information. Such a plan would push the French government's stake above 15 percent.

Lagardere SCA fell 1.2 euros, or 2.1 percent, to 54.75.

Publicis Groupe (PUB FP) slipped 24 cents, or 0.8 percent, to 28.81 euros. The world's fourth-largest advertising company will be dropped from the CAC 40 index on Dec. 18. It'll be replaced by Vallourec SA, the world's second-largest maker of tubes used in oil and gas drilling, stock market operator Euronext said.

Vallourec lost 3 euros, or 1.5 percent, to 199.9, after earlier gaining as much as 2.2 percent.

Technip SA (TEC FP) fell 1.9 euros, or 3.4 percent, to 53.8. Eni SpA, Europe's fourth-biggest oil company, said it doesn't plan to buy Technip after La Tribune reported on Nov. 24 that the company was preparing to make a bid.

To contact the reporter on this story: Helene Fouquet in Paris at hfouquet1@bloomberg.net.

Last Updated: November 27, 2006 12:39 EST