* FTSEurofirst 300 ends up 0.8 percent
* M&A activity boosts stocks on both sides of Atlantic
* Debt-ridden peripheral euro zone countries monitored
By Brian Gorman
LONDON, Nov 15 (Reuters) - European shares closed higher on
Monday as data that reassured on the prospects of economic
recovery proved a stronger theme than euro zone debt worries,
and with the auto sector among those driven up by M&A activity.
The FTSEurofirst 300 <> index of top European shares
rose 0.8 percent to close at 1,112.30 points after falling for
three sessions. The index fell 0.7 percent last week, but is up
more than 72 percent from its record low in March 2009.
"I'm not surprised the market has gone up. There's a
recovery going on in the United States, and in Europe, though
it's in some countries there more than others," Dean Tenerelli,
fund manager at T Rowe Price in London, said.
"It's been a very good earnings season. Profitability is
good. The European market is trading at 10 or 11 times earnings.
It's ridiculously low. Forget where we've come from. Look at the
valuations."
Sales at U.S. retailers rose more than expected in October
to post their largest gain in seven months, further evidence the
economy was regaining strength after a soft patch in the summer.
But Monday's upbeat report from the Commerce Department was
tempered by a manufacturing gauge in New York state which this
month fell to its lowest since April 2009. []
European autos were higher on consolidation moves.
German truck maker MAN SE <MANG.DE> and Sweden's Scania
<SCVb.ST> are in talks over a merger, Scania said, in a move
which could see Volkswagen <VOWG.DE> take full control of both.
MAN, Scania and Volkswagen rose 6.2, 1.4 and 2.8 percent
respectively. []
AXA <AXAF.PA> added 2.3 percent after the French insurer and
Australian wealth manager AMP <AMP.AX> launched a new $13.1
billion-plus bid for AXA Asia Pacific, a move set to challenge
banks' domination of the world's fourth-largest wealth market
down under. []
Miners rose, led by BHP Billiton <BLT.L> up 1.8 percent,
after it ditched a $39 billion bid for Canada's Potash Corp
<POT.N> and bowed to investor calls to return cash.
[]
Lonmin <LMI.L>, the world's third-biggest platinum producer,
rose 4 percent after saying it is to resume dividend payments
after posting a better-than-expected swing to full-year profit.
Other risers in the sector included Kazakhmys <KAZ.L>, up 1
percent, as metals prices shrugged off the stronger dollar.
BAYER BOOST
Bayer <BAYGn.DE> rose 3.9 percent on upbeat results from a
study relating to its stroke prevention drug Xarelto, presented
in Chicago.
Invensys <ISYS.L> jumped 9.1 percent after traders cited a
Daily Telegraph report that China Southern Rail may bid for the
British engineering group. Invensys said it was not in offer
talks.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC40 <> ended the day between 0.4
and 0.9 percent higher.
The euro zone had a bigger-than-expected trade surplus in
September as export growth outpaced the year-on-year rise in
imports. []
Concerns about debt in peripheral euro zone countries eased
after the Irish Independent newspaper said Ireland was
considering asking for money for its banks from the EU emergency
fund, to fend off the threat of a bailout for the state.
But investors kept a close eye on developments in peripheral
euro zone countries, which have seen a spike in borrowing costs
over the past weeks that raised new concerns about their ability
to cut swollen deficits and debt without financial aid.
Dublin has not applied for EU debt assistance, but has not
ruled out such a move.
Spain's IBEX <> rose 1.2 percent and Ireland's ISEQ
<.ISEQ> gained 0.8 percent.
On Wall Street, the Dow Jones <>, S&P 500 <.SPX> and
Nasdaq Composite <> were up between 0.1 and 0.4 percent
around the time European bourses were closing.
As well as retail sales, U.S. stocks were boosted by M&A.
Caterpillar Inc <CAT.N> agreed to buy mining equipment maker
Bucyrus International Inc <BUCY.O> for $7.6 billion.
(Editing by David Hulmes)
