* FTSEurofirst down 0.3 pct, Euro STOXX 50 down 0.7 pct
* Nokia, Alcatel fall after Samsung settlement
* Bankia rises after reporting higher profits
* Italian bank stocks also gain on prospect of M&A (Adds quote, detail)
By Sudip Kar-Gupta
LONDON, Feb 1 (Reuters) - European shares fell on Monday, pulled lower by telecom equipment stocks amid investor disappointment over the terms of a deal between Nokia and Samsung to settle a legal dispute.
The pan-European FTSEurofirst 300 index, whose six percent fall in January was its worst monthly drop at the start of a year since 2008, dipped 0.3 percent to 1,344.38.
Germany's DAX and the euro zone's blue-chip Euro STOXX 50 fell 0.5 percent and 0.7 percent respectively.
Shares in Nokia and Alcatel -- which Nokia is in the process of acquiring -- slumped around 10 percent after traders expressed disappointment with the terms of Nokia's settlement of a patent dispute with Samsung.
Among other fallers, the abrupt departure of Luxottica's third chief executive in 17 months sent shares in the glasses firm down 6 percent, and concerns about strategy and the ability of the group's 80-year-old founder to steer the company in a more challenging market.
"Luxottica's predictable and stable revenue base is not matched by its senior management team," analysts at Barclays said in a note.
"Given the shakeup 18 months ago, we believe this will be greeted with some scepticism by investors."
Traders said weak data from China, the world's second-biggest economy, would also keep stock markets under pressure.
PMI surveys on Monday also showed a slowdown in factory growth across the euro zone.
"Disappointment over the Chinese data will dampen sentiment. For the medium term, I would definitely look to sell out on any market rallies," said Hantec Markets' analyst Richard Perry.
The FTSEurofirst is down around 6 percent since the start of 2016 while the DAX is around 20 percent below a record high reached last April.
Among risers, Bankia climbed 5 percent after the state-controlled Spanish bank reported higher profits.
Shares in Banco Popolare and other Italian banks also rose after the lender said it expected to agree a merger with Banca Popolare di Milano within a month, signalling the start of a long-awaited consolidation of Italy's fragmented banking sector.
France's Vallourec rose nearly 16 percent after the oil industry tubing maker saw a trading halt lifted at noon, following the announcement of an extensive restructuring plan.
Shares in the firm fell 14 percent in the previous session.
Today's European research round-up (Editing by Gareth Jones)