Earnings help European shares edge higher to extend rally
* FTSEurofirst 300 up 0.1 pct, hits seven-year high
* Sabadell slumps after bid for TSB
* Drop in euro seen boosting earnings by 10-13 pct
* European corporate results better than U.S. earnings (Adds quote, detail)
By Blaise Robinson and Alistair Smout
PARIS/LONDON, March 12 (Reuters) - European shares held near fresh seven-year highs hit on Thursday, weighed down by Sabadell after it made a bid for TSB, although better than expected earnings reports supported the market.
Spain's Banco de Sabadell fell 6.1 percent after making a takeover bid that valued British bank TSB at around $2.6 billion. TSB rose 24 percent.
"Sabadell can diversify away from the Spanish market with this deal, so it could be good for them. But they have to set aside the cash, and it's a new market for them, so a bit of an unknown," said Jasper Lawler, market analyst at CMC Markets.
"European banks still need strong balance sheets, and maybe acquisitions aren't the conservative approach investors are looking for." Continuación...