European shares advance, Shire boosts drugmakers

lunes 14 de julio de 2014 07:11 GYT

* FTSEurofirst 300 index gains 0.6 percent

* Shire leads drugmakers on M&A news

* Kuehne & Nagel, Sports Direct advance

* Banco Espirito Santo falls for 6th session

By Atul Prakash

LONDON, July 14 (Reuters) - European shares rose on Monday, rallying from near two-month lows after their biggest weekly loss in four months, with merger and acquisition activity in the drugs sector and some positive company news improving sentiment.

London-listed drugmaker Shire rose 2.2 percent after saying it was ready to recommend a new 31 billion pound ($53 billion) takeover offer from AbbVie, entering talks after receiving a fifth bid from the U.S. firm.

Shire led the sector higher, with the STOXX Europe 600 Healthcare Index rising 0.9 percent to feature among the top sectoral gainers in Europe and helping the broader market. Shares in Shire touched an all-time high of 50.45 pounds.

"It's no secret U.S. companies have a lot of cash ... I think there will be more of these kind of deals to come," said Michael Hewson, chief market analyst at CMC Markets.   Continuación...