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European shares gain on Vodafone bid rumours

European shares rose on Tuesday, boosted by Vodafone on rumours of a multi-billion-pound break-up bid for the UK telecoms group.

Vodafone advanced 3.4pc after a report that said U.S. joint venture partner Verizon Communications and AT&T had been working together on a joint bid for the British group. Vodafone declined to comment.

"If Verizon and AT&T came in with a break-up bid for Vodafone, that would be a classic example of exactly the kind of (cross-border M&A) thesis which we think is coming over the (next) months," Exane BNP Paribas's head of equity strategy, Ian Richards, said.

"Anything such as this which helps investors really focus on the underlying value appeal and what something is intrinsically worth, I think, is clearly good news for share prices."

The FTSEurofirst 300 provisionally closed up 1.3pc or 15.02 points, at 1,203.94 points, with Vodafone accounting for nearly 1 point of the index's rise.