* FTSEurofirst 300 up 0.7 pct
* Shire to recommend shareholders accept AbbVie offer
* BES still weak after triggering market sell-off last week
By Alistair Smout
EDINBURGH, July 14 European shares rose on
Monday, boosted by M&A activity in the pharmaceutical sector and
rallying from near two-month lows after their biggest weekly
loss in four months.
UK-listed pharmaceutical Shire rose 2.6 percent
after it said it was ready to recommend a new 53.20 pound
($90.53) per share offer from US firm AbbVie.
Reuters had reported on Saturday that Shire had asked AbbVie
to sweeten its offer to close to 53 pounds in order for it to
recommend the deal.
Shares in Shire touched an all-time high of 50.45 pounds.
"AbbVie are coming in at a decent level," said Manoj Ladwa,
head of trading at TJM Partners.
"It's attractive to Shire shareholders and I think they'll
take it - AbbVie sounded their key shareholders out and I think
a fair level has been reached."
The pan-European FTSEurofirst 300 was up 0.7
percent at 1,361.91 by 0813 GMT having fallen 3 percent last
week - its biggest drop since March.
Portugal's biggest listed bank Banco Espirito Santo
was down 2.3 percent.
The stock has fallen nearly 40 percent in five days, and was
at the centre of global market jitters late last week after the
disclosure of financial irregularities at a web of family-held
holding companies behind the lender.
Portuguese blue chip shares rose 1.3 percent,
recouping part of a 10 percent fall last week, with traders
saying contagion from BES to the rest of the market was limited.
Credit Suisse remained underweight Portuguese equities
despite a broadly positive view of peripheral Europe, citing its
private sector debt levels, which are the highest of any
developed nation, poor economic momentum and risk of deflation.
The investment bank cuts its overweight in continental
Europe to 8 percent from 13 percent, saying that economic data
was poor and the short-term outlook for earnings worse.
"However, over the next 3 years, our base case forecast is
for 39 percent (earnings) growth, higher than our US forecast of
28," analysts at Credit Suisse said in a note, saying that
should economic data get much worse, the European Central Bank
would implement a quantitative easing asset purchase programme.
($1 = 0.5877 British Pounds)
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(Editing by John Stonestreet)