May 17 (Bloomberg) -- European financial stocks rose, paced by asset managers including Amvescap Plc after Schroders Plc reported higher-than-expected profit. Allied Irish Banks gained as the Irish Times said the lender considered selling itself.

``In general, we are very positive on financial stocks,'' said Philipp Musil, a fund manager at Constantia Privatbank AG in Vienna, which oversees $12 billion. ``They're benefiting from a combination of good earnings and takeover speculation.'' He said he's ``focusing on small- and mid-cap'' financial stocks.

Chemical companies including Clariant AG and Air Liquide SA paced declining shares as oil rose to $49 a barrel in New York, rebounding from yesterday's three-month low. BP Plc led gains by oil producers.

The Dow Jones Stoxx 600 Index slipped 0.1 percent to 258.88 at 10:38 a.m. in London, erasing a gain of as much as 0.3 percent. The Stoxx 50 rose less than 0.1 percent. The Euro Stoxx 50, a gauge for the 12 countries using the euro, lost 0.3 percent, with more than two stocks falling for each that rose.

Yell Group Plc advanced as the phone-directory owner said it expects ``double-digit'' earnings growth and announced it will buy Transwestern Holdings LP for $1.6 billion.

Benchmarks rose in eight of the 16 Western European markets that were open. Ireland's ISEQ Overall Index was the biggest gainer, adding 0.9 percent, buoyed by Allied Irish. Denmark's KFX Copenhagen Share Index lost the most, sliding 0.4 percent.

Norway's market is closed today for a holiday. Markets including Switzerland, Norway, Iceland, Denmark, Austria and Luxembourg were closed yesterday for holidays.

Schroders, Amvescap

Schroders, a 201-year-old London-based money manager, climbed 4.8 percent to 721.5 pence. Its first-quarter earnings before tax rose 50 percent as individuals increased investments and institutional clients withdrew the least since 1998.

``Schroders had a reasonably good trading statement this morning and they seem to be going well,'' said Brian Moretta, a fund manager at Edinburgh, Scotland-based SVM Asset Management, which oversees $1.6 billion. He said he's ``cautiously positive'' on financial stocks.

Amvescap, Europe's largest publicly traded money manager, advanced 4.2 percent to 317.75 pence.

ING Groep NV, the No. 1 Dutch financial-services provider, increased 0.8 percent to 21.99 euros. Analysts at UBS AG upgraded the stock to ``buy'' from ``neutral'', citing ``decent'' business in Asia. ING said May 12 that its Asian insurance business helped boost quarterly earnings.

Allied Irish Banks, Ireland's No. 2 bank by assets, rose 2.7 percent to 16.54 pence. Chief Executive Michael Buckley proposed selling the lender to M&T Bank Corp. last year, the Irish Times said, without citing anyone.

Trevor McEvoy, a spokesman for the bank, told Bloomberg News that the possible sale was discussed as part of an overall strategic review. There was no formal proposal put to the board, he said.

Chemical Makers

Air Liquide, the biggest maker of industrial gases, slid 2.3 percent to 137.70 euros in Paris. Clariant AG, the world's second- largest specialty chemical maker, fell 1.2 percent to 17.2 Swiss francs.

Crude-oil futures jumped as much as 39 cents to $49 a barrel in New York after-hours trading, amid concern increased supplies won't ease shortages of their products during the second half of the year.

BP, the world's second-largest publicly-traded oil company, rose 0.8 percent to 532 pence. Compania Espanola de Petroleos SA, Spain's No. 2 oil company, increased 0.7 percent to 30.15 euros. Eni SpA rose 0.5 percent to 19.42 euros.

Yell, Roche

Yell Group, the owner of Britain's Yellow Pages phone directory, climbed 3.1 percent to 410 pence, erasing an earlier drop of as much as 1.9 percent, after saying it expects ``double- digit'' earnings per share growth this year. The company said it will buy Transwestern Holdings for $1.6 billion.

Roche Holding AG added 0.4 percent to 146.2 Swiss francs. The drugmaker said on May 13 after markets had closed that it won U.S. regulatory clearance to market its Pegasys medicine for chronic hepatitis B, adding a third approved use for the drug. The Swiss market was closed yesterday for a holiday.

BAA Plc, the world's largest airport operator, gained 1 percent to 609 pence after reporting annual profit rose 45 percent to 545 million pounds ($1 billion) as passenger traffic increased and the company sold property.

AstraZeneca Plc, Europe's third-largest drugmaker, rose 1.1 percent to 2,346 pence. A study published in the Lancet Oncology journal found the company's Iressa drug may help reduce the size of breast tumors.

Dividend Payouts

Gains were also constrained by companies whose shares are trading today without the right to dividend payouts, including Accor SA and Schneider Electric SA.

Accor dropped 2.9 percent to 35.08 euros. Shares of the world's fourth-largest hotelier changed hands without the right to a 25-cent a piece payment.

Schneider Electric, the biggest maker of circuit breakers, slipped 3.2 percent to 55.75 euros as the stock trades without the right to a 1.8 euro per share payout.

Atlas Copco AB fell 6.9 percent to 105 Swedish kronor. Shares of the world's biggest maker of air compressors trade for the first time after a three-for-one stock split and the automatic redemption of one share, resulting from the split, worth 20 kronor.

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

Last Updated: May 17, 2005 05:43 EDT