* FTSEurofirst 300 up 0.2 pct, Euro STOXX 50 up 0.3 pct
* Sunday vote makes Greece more likely to leave the euro - banks
* ProSiebenSat1, Axel Springer rally on merger chatter
* Technip slumps following restructuring announcement
By Alistair Smout
LONDON, July 7 (Reuters) - European shares steadied on Tuesday, recouping some of the previous session’s decline, before a euro zone summit on the Greek debt crisis later in the day.
The euro zone Euro STOXX 50 rose 0.3 percent after falling 2.2 percent on Monday, once Greek voters rejected conditions for a new bailout in a referendum on Sunday.
France and Germany told Greece on Monday to come up with serious proposals to restart financial aid talks. The European Central Bank raised the pressure before Tuesday’s summit by keeping a tight grip on funding to Greek banks.
The pan-European FTSEurofirst 300 rose 0.2 percent to 1,503.88 points by 0748 GMT.
Strategists at BNP Paribas said Sunday’s referendum results did not mean Greece had to quit the euro zone, but did increase the chances it will leave to 70 percent.
“The creditors will require ... a commitment to reform and monitoring of its implementation. However, in light of the referendum, the likelihood of the Greek government acceding to creditors’ demands has diminished,” the strategists said in a note.
ProSiebenSat1 rose 2.8 percent, a top FTSEurofirst 300 riser, after sources said talks over a merger with German publishing house Axel Springer had restarted.
Axel Springer rose 5.9 percent, even though it said that speculation that its majority owner, Friede Springer, might relinquish control was “unfounded”.
SAP and Evonik both rose 2.4 percent, after UBS lifted its target price for both stocks.
Technip sank 7.8 percent after it announced a restructuring programme, booking a 650 million-euro ($719 million) charge and cutting 6,000 jobs.
Rolls-Royce dropped 2.6 percent, following a 6.3 percent loss in the previous session. A raft of brokers downgraded the stock after a third profit warning in nine months on Monday.
Europe bourses in 2015: link.reuters.com/pap87v
Asset performance in 2015: link.reuters.com/gap87v
Today’s European research round-up
Editing by Larry King