Oct. 18 (Bloomberg) -- French stocks dropped, paced by Cie. de Saint Gobain SA and Alcatel-Lucent SA.

Lagardere SCA and Groupe Danone SA rose.

The CAC 40 Index fell 25.41, or 0.4 percent, to 5,793.39 at 12:50 p.m. in Paris. The SBF 120 Index also lost 0.4 percent.

``We're indecisive about the stock market,'' said Laurent Vallee, a fund manager at Richelieu Finance in Paris, which oversees $5 billion. ``We're hesitating between a market supported by the idea of an interest rate cut and a market declining because of a possible economic slowdown in the U.S. and the rest of the world.''

Saint Gobain, Europe's largest building-materials supplier, dropped 1.4 percent to 70.94 euros. Morgan Stanley cut its share-price estimate to 78 euros from 85 euros.

Alcatel, the world's largest maker of telecommunications equipment, slipped 2 percent to 6.52 euros.

Nokia Siemens Networks, which competes with Alcatel in providing wireless and fixed-network equipment, posted a third- quarter operating loss of 120 million euros, compared with a year-earlier profit of 131 million euros. Nokia expects ``very slight'' 2007 market growth for mobile and fixed infrastructure.

Lagardere climbed 2.1 percent to 58.98 euros. Arnaud Lagardere may seek to delist France's largest publisher from the stock market, Le Nouvel Observateur magazine reported, without citing anyone. A Lagardere spokesman said the report was a ``monumental error.''

Danone advanced 1.8 percent to 57.17 euros, extending yesterday's 3.6 percent gain. The world's largest yogurt maker yesterday said third-quarter dairy revenue increased on demand for healthier foods.

The following shares rose or fell in Paris. Stock symbols are in parentheses.

Haulotte Group (PIG FP) added 36 cents, or 1.3 percent, to 28.47 euros. The maker of aerial work platforms said third- quarter sales rose 23 percent to 134.7 million euros and forecast full-year sales growth of near 25 percent.

Heurtey Petrochem SA (ALHPC FP) gained 1 euro, or 3.8 percent, to 27.5 euros. The maker of cracking furnaces reported net income of 1.3 million euros in the first half, up from 600,000 euros a year earlier.

Plastic Omnium SA (POM FP) jumped 2.17 euros, or 5.1 percent, to 44.6. The company that makes car bumpers and playground equipment said nine-month sales rose 9.2 percent to 1.89 billion euros.

Valeo SA (FR FP) slid 1.16 euros, or 2.8 percent, to 39.92 euros. Europe's third-largest maker of car parts swung to a net loss of 40 million euros in the third quarter from a year- earlier profit of 7 million euros. The company was hurt by the euro's rise against the dollar and higher raw materials costs.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.

Last Updated: October 18, 2007 06:53 EDT