European Stocks Post Biggest Weekly Decline in Three Months

European stocks posted the biggest weekly drop in three months, with banks leading declines amid concern the region’s economy is slowing as the sovereign-debt crisis curbs growth.

Allied Irish Banks Plc slid 12 percent after Ireland’s government announced plans to take majority control of the lender. Michelin & Cie., the world’s second-largest tiremaker, tumbled 15 percent after saying it plans to raise 1.2 billion euros ($1.7 billion) in a rights offering. Hennes & Mauritz AB, Europe’s second-biggest clothing retailer, slumped 6.5 percent as third-quarter profit missed analysts’ estimates.