(Deletes incorrect reference to Greek banks rising in paragraph 7, as the Greek
stock market is closed)
* FTSEurofirst 300 index up 0.4 pct
* EU summit on Greece in focus; Dubai plans restructuring
* Banks, utilities gain
* For up-to-the-minute market news, click on []
By Harpreet Bhal
LONDON, March 25 (Reuters) - European shares rose to their highest in more
than 17 months on Thursday, with banks gaining ahead of a European Union meeting
to aid Greece while plans by Dubai to support its debt-laden firms provided
relief.
By 0942 GMT, the pan-European FTSEurofirst 300 <> index of top shares
rose 0.4 percent at 1,077.11 points, hitting its highest intraday level since
October 2008 at 1,078.63.
European Union leaders will hold a two-day summit, divided over how to help
heavily indebted Greece and struggling to maintain confidence in the euro.
A pledge by Dubai's government to support the restructuring of debt-laden
state-owned firms Dubai World and Nakheel by providing $9.5 billion in funding
eased some concerns about sovereign debt problems. Dubai's benchmark index
<> rose 4.8 percent.
"The Greek problem hasn't gone away, and you have got the Portuguese
downgrade reminding us that the so-called PIIGS economies are still vulnerable,"
said Bernard McAlinden, investment strategist at NCB Stockbrokers, referring to
Portugal, Italy, Ireland, Greece and Spain.
"The Greek problem would affect markets more if it spread significantly to
Spain. That would be the bigger worry."
Banks were higher ahead of the EU summit, and benefiting from some relief
over the debt problems in Dubai. Barclays <BARC.L>, HSBC <HSBA.L>, Societe
Generale <SOGN.PA>, BNP Paribas <BNPP.PA> and Deutsche Bank <DBKGn.DE> were up
0.2 to 1.3 percent.
Utilities were also strong. United Utilities <UU.L> added 1.4 percent after
the company said it expected a sound performance for the current financial year
on low-cost financing. [].
Scottish & Southern Energy <SSE.L>, GDF Suez <GSZ.PA>, E.ON <EONGn.DE> and
National Grid <NG.L> climbed 1.9 to 3.3 percent.
General Electric's <GE.N> said it planned to invest 340 million euros in
European offshore wind business. []
Among other gainers, Next <NXT.L> led general retailers higher, gaining 4.8
percent after it beat company guidance with an 18 percent rise in 2009/10
profit. Marks & Spencer <MKS.L>, Inditex <ITX.MC> and Home Retail <HOME.L>
advanced 0.6 to 1.7 percent.
Across Europe, Britain's FTSE 100 <>, Germany's DAX <> and
France's CAC 40 <> rose 0.2 to 0.6 percent.
DEBT IN FOCUS
Fitch downgraded Portugal's debt rating on Wednesday, pressuring European
shares in midday trade, but equities later recouped their losses to close flat.
Greece faces the prospect of refinancing 20 billion euros of debt in April
and May and says it needs only a standby aid package to reassure nervous
financial markets and that it can get by without having to resort to using the
money set aside for it. []
Among other gainers on the index, Hochtief <HOTG.DE> rose 4.2 percent after
Germany's biggest construction company beat expectations with a 21 percent rise
in 2009 profit and said earnings would rise slightly this year as infrastructure
spending begins to pick up. []
On the downside, Legrand <LEGD.PA> shed 3.3 percent. KKR said it agreed to
sell a 4.4 percent stake in Legrand via an accelerated bookbuilding and said it
would hold about 20.6 percent of Legrand's share capital and approximately 27.5
percent of its voting rights after the share sale.
Vodafone Group <VOD.L> dropped 1.6 percent as Morgan Stanley
double-downgraded its rating for the mobile phones operator to "underweight"
from "overweight".
(Editing by Will Waterman)
