PARIS, Oct 7 (Reuters) - European shares slipped in early trading on Tuesday as data showing Germany's industrial output falling far more than expected spooked investors, although losses were limited by a rally in mining shares boosted by M&A news.
Shares in Rio Tinto surged 5.3 percent, while Anglo American added 2.9 percent and BHP Billiton gained 1.2 percent. Rio said it rejected a merger approach from smaller rival Glencore to create a $160 billion mining and trading giant.
At 0712 GMT, the FTSEurofirst 300 index of top European shares was down 0.6 percent at 1,341.77 points. Germany's DAX was down 0.8 percent.
Germany posted its biggest drop in industrial production since the financial crisis in early 2009, Economy Ministry data showed on Tuesday, the latest figures to raise question marks about Europe's largest economy.
Reporting by Blaise Robinson; Editing by Alistair Smout