Earnings, M&A help Europe stocks recover
* FTSEurofirst 300 up 0.3 pct, Euro STOXX 50 up 0.1 pct
* Spanish, Italian stocks resume sell-off
* Auto stocks knocked by worries over Chinese investigation
By Blaise Robinson
PARIS, Aug 5 (Reuters) - European shares gained ground on Tuesday in a tentative rebound following last week's sharp sell-off, supported by forecast-beating results from blue-chips including Deutsche Post.
M&A fever also helped, with Vivendi surging 3.6 percent after Telefonica unveiled a 6.7 billion euro ($8.99 billion) offer for the French firm's Brazilian business GVT. Shares in Telefonica slipped 1.7 percent.
But despite the gains in core Europe, Southern European markets fell sharply, resuming last week's retreat as investors, rattled by the crisis at Portugal's Banco Espirito Santo , further reduced their exposure to the region.
Shares in Italian lenders Banco Popolare and Intesa SanPaolo lost 3.8 and 2.4 percent respectively, while Spain's Bankinter fell 4.3 percent.
Milan's FTSE MIB lost 1.6 percent and Madrid's IBEX fell 1.4 percent. Continuación...