European shares fall, led by Barclays plunge

                                
 * Barclays plunges, traders point to stake sale by Abu Dhabi
                                
 * Carmakers rise, top sectoral gainers
                                
 * Eyes on U.S. data later in the day
                                
 * For up-to-the-minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Christoph Steitz
                                
 FRANKFURT, June 2 (Reuters) - European shares declined on
Tuesday, led lower by banks as traders said Abu Dhabi had sold
about 3.5 billion pounds of shares in Barclays <BARC.L>, while
investors also pointed to profit taking after Monday's rally.
                                
 At 0848 GMT, the FTSEurofirst 300 index of top European
shares was down 0.2 percent at 884.61 points after briefly 
turning positive. [ID:nL2422904]
                                
 On Monday, the index closed up 2.8 percent at 886.27 points,
its highest level in nearly five months, boosted by data from
the United States and China that sparked optimism regarding an
economic recovery. [ID:nL1615954]
                                
 Barclays <BARC.L> plunged 13.8 percent as traders said Abu
Dhabi government-owned International Petroleum Investment
Company (IPIC) sold about 3.5 billion pounds ($5.74 billion) of
shares in the British bank at 267 pence each, a 16 percent
discount to Monday's close. [ID:nL2185843]
                                
 "The ice continues to be thin, and there is a possibility
that the market will continue to fall," said Hans-Juergen Delp,
equity market strategist at Commerzbank in Frankfurt.
                                
 "Basically, the mood has not changed since yesterday; no one
really wants to go into the market," he added.
                                
 Roger Peeters, strategist at Close Brothers Seydler pointed
to profit taking after yesterday's massive gains.
                                
 Banks took most points off the FTSEurofirst 300 index, and
the DJ Stoxx Banks Index <.SX7P> was the top sectoral decliner,
down 1.5 percent.
                                
 Deutsche Bank <DBKGn.DE>, Societe Generale <SOGN.PA>, Banco
Santander <SAN.MC> and Royal Bank of Scotland <RBS.L> all fell
between 0.6 and 2.5 percent.
                                
 
                                
 OILS DOWN, CARS UP
                                
 Oil and gas producers were among top losers, as crude oil
<CLc1> dropped 1 percent. The DJ Stoxx Oil and Gas Index fell
0.3 percent.
                                
 Gamesa <GAM.MC> plunged 5.8 percent after Spanish power firm
Iberdrola <IBE.MC> said Morgan Stanley had placed 10 percent in
the company. [ID:nMDT006428]
                                
 On the upside, the DJ Stoxx Cars Auto Index <.SXAP> was the
top sectoral gainer, up 3 percent, with BMW <BMWG.DE>, Daimler
<DAIGn.DE>, Porsche <PSHG_p.DE> and Fiat <FIA.MI> up 0.7 to 3.6
percent.
                                
 Europe's biggest home improvement retailer Kingfisher
<KGF.L> also gained 6.6 percent after the company delivered
forecast-beating first-quarter profits. [ID:nL11797]
                                
 Commerzbank's Delp also said the market might gain momentum
after key macroeconomic data in the United States later in the
day, with the focus on pending homes sales for April.
                                
The FTSEurofirst 300 index lost 45 percent last year as the
global financial crisis hit equities worldwide, but is up 6.2
percent this year on hopes that the worst part of the turmoil
might have passed.
                                
 Across Europe, Britain's FTSE 100 <.FTSE> was down 1.2
percent, Germany's DAX <.GDAXI> was down 0.1 percent and
France's CAC <.FCHI> was down 0.5 percent.
 (Additional reporting by Dominic Lau and Steve Slater in
London, editing by Will Waterman)