European shares fall, still set for biggest weekly gain in 2 mths
* Pan-European FTSEurofirst 300 down 0.7 percent
* Actelion drops after discussions with ZS Pharma
* E.ON falls after dropping plans for nuclear spin-off
By Atul Prakash and Alistair Smout
LONDON, Sept 11 (Reuters) - European shares fell for a second straight day on Friday, led lower by Swiss drugmaker Actelion, but one major index was headed for its biggest weekly rise since July.
Actelion shares slid 4.8 percent, the biggest decline in the FTSEurofirst 300 index. HSBC analysts said a bid by Actelion for ZS Pharma might destroy value for its shareholders, after Bloomberg reported that Actelion had made an offer worth $2.5 billion. The companies confirmed they had held talks but not whether they were related to a acquisition.
The FTSEurofirst 300 index was down 0.7 percent at 1,405.16 points by 1339 GMT. But the index is up nearly 1 percent so far this week and is set for its biggest weekly rise in 2 months.
Equities had been under pressure from concern that China's growth is faltering. They have stabilised since Chinese regulators intervened in its stock market, with some investors also betting the recent uncertainty would dissuade the U.S. Federal Reserve from raising rates next week.
"If the Fed doesn't raise rates this month, we might see a bounce. But investors will start thinking that a hike is coming in October. This overhang is not good for the markets," Manish Singh, head of investment services at Crossbridge Capital, said. Continuación...