June 30 (Bloomberg) -- German stocks including Deutsche Telekom AG rose after the company's T-Online unit agreed to buy a Spanish phone company to allow it to gain European customers. Shares of Siemens fell.

The benchmark DAX Index added 2.65, or less than 0.1 percent, to 4586.28 in Frankfurt, extending the monthly advance to 2.8 percent. Ten stocks rose and 20 fell. The index gained 5.5 percent in the quarter, the third such consecutive rise. DAX September futures added 17, or 0.4 percent, to 4610. The HDAX Index of the country's 110 biggest companies rose less than 0.1 percent to 2363.02.

Deutsche Telekom, Europe's largest phone company, rose 21 cents, or 1.4 percent, to 15.30 euros.

Deutsche Telekom ``still has quite a lot of upside,'' said Adrian Darley, a fund manager at Gartmore Investment Management Ltd. in London which manages about 70 billion euros for clients. The company ``stands out in a market where we're not seeing a lot of opportunities across Europe.'' He said Gartmore increased the number of shares it held in Deutsche Telekom ``in the past couple of couple weeks.''

T-Online International agreed to buy the phone unit of Spain's Red Electrica de Espana SA for 35 million euros ($42.3 million) to help capture rising demand for faster Web access. The purchase will add 25 million euros to earnings before interest, tax and depreciation, T-Online said.

Siemens AG, the world's second-largest maker of power- generation turbines, slid 57 cents, or 0.9 percent, to 60.34 euros. ABB Ltd., the world's biggest maker of power transformers, cut its profit forecast for the full year.

``The ABB profit warning could be weighing on Siemens' shares,'' said Theo Kitz, an analyst at Merck Finck & Co. in Munich speaking by telephone.

Klaus Voges, the head of Siemens's power-generation unit, said the division aimed for margin on earnings before interest and taxes ``of between 10 and 13 percent'' and the company is ``currently within that range.''

Higher Power Prices

RWE AG and E.ON AG climbed after the utility companies' share-price forecasts were raised by Dresdner Kleinwort Wasserstein analysts.

RWE, Germany's largest electricity producer, rose 1.08 euros, or 2.1 percent, to 53.38 euros. E.ON, the country's No. 1 utility, increased 91 cents, or 1.3 percent, to 73.73. Analysts at Dresdner Kleinwort Wasserstein raised the share-price forecasts to 64 euros from 54 euros and to 88 euros from 77 euros, respectively. They expect higher power prices to boost earnings.

Separately, CEZ AS, the Czech Republic's largest power company, is in talks with RWE to buy RWE's minority stake in Severoceska Energetika AS, a power distributor operating in the northern Czech Republic, the news service CTK said. RWE's Czech spokesman, Martin Chalupsky, declined to comment.

The following stocks are making gains or losses. Stock symbols are in parentheses after the company names.

CeWe Color Holding AG (CWC GY) climbed 1.85 euros, or 4.6 percent, to 42. Europe's largest independent photo developer raised its sales forecast for this year, saying revenue will gain 5 percent to 450 million euros because of increased demand for digital prints. CeWe in April predicted a figure of 437 million euros.

MPC Capital AG (MPC GY), a financial-services company, jumped 2.94 euros, or 6 percent, to 52.05. Juergen Hackenberg, an analyst at UBS AG, upgraded the shares to ``buy 2'' from ``neutral 2,'' citing the view the stock's price doesn't reflect the company's earnings outlook.

Hannover Rueckversicherung AG (HNR1 GY) fell 55 cents, or 1.7 percent, to 31.25 euros. Morgan Stanley, the world's largest securities firm, sold a 31.2 million-euro stake in the German reinsurer for 31.20 euros a share.

ProSiebenSat.1 Media AG (PSM GY) climbed 5 cents, or 0.4 percent, to 14.23 euros. The stock rose as much as 3.1 percent after a German newspaper reported Axel Springer AG, Europe's biggest newspaper publisher was interested in possibly taking over the company. Axel Springer will start to examine its books next week to ponder the risks and opportunities of such a transaction, Tagesspiegel said, citing unidentified people familiar with the talks. Prosiebensat.1's spokeswoman Katja Pichler declined to comment on the report. Axel Springer (SPR GY) shares didn't trade.

To contact the reporter on this story: Margo Towie in Brussels at mtowie@bloomberg.net.

Last Updated: June 30, 2005 12:14 EDT