Bets on Greek progress boost European shares, ATG index surges
* FTSEurofirst 300 up 2.2 pct, volatility sinks
* Telecoms outperform after Bouygues approach
* Greek shares up 9 pct, Greek banks up 20.8 pct
By Atul Prakash and Lionel Laurent
LONDON, June 22 (Reuters) - European shares climbed to their highest level in more than a week on Monday, anticipating some progress on Greece's debt crisis after months of wrangling with international creditors.
The telecoms sector outperformed the broader market after a takeover bid for France's Bouygues Telecom reignited hopes for more corporate deals.
Greek stocks surged 9 percent, with the local banking sector jumping nearly 21 percent. Investors have been nervous that deposit outflows may prompt capital controls.
"It's a relief rally, but it has got a long way to unfold. There is a 75 percent chance that it will be sorted out and Greece will remain in the euro zone," Nick Lyster, European CEO of Principal Global Investors Europe, said.
Euro zone officials welcomed Greek concessions on Monday as a possible step towards a deal on averting a default, but politicians dismissed expectations of a breakthrough at a summit later in the day to secure the country's future in the euro. Continuación...