* FTSEurofirst 300 rises 1.3 percent, 2nd session of gains
* Cadbury up 39 pct on $16.7 bln Kraft bid, rejects offer
* Financials among top gainers, miners track metals prices
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, Sept 7 (Reuters) - European equities on Monday
extended the previous session's sharp gains, boosted by Cadbury
<CBRY.L> which surged 39 percent on a $16.7 billion bid by North
America's Kraft Foods <KFT.N>.
At 0844 GMT, the FTSEurofirst 300 <> index of top
European shares was up 1.3 percent at 974.72 points after
climbing 1.3 percent higher in the previous session.
The index, which slumped 45 percent in 2008, is up 17
percent this year and has jumped 50 percent since hitting a
record low in early March.
"We are quite optimistic for the short term because
everything is there in order to manage the uptrend," said Romain
Boscher, head of equity management at Groupama Asset Management.
"The market is talking a lot more about M&A stories this
morning. This kind of newsflow coupled with a normalised
valuation environment is what the market is waiting for in order
to get more bullish," he added.
Kraft said on Monday it had offered 300 pence in cash and
0.2589 new Kraft shares for each Cadbury share in the hope that
it can create a "global powerhouse in snacks, confectionery and
quick meals" with combined revenues of about $50 billion.
Cadbury, the world's second biggest confectionery group, has
rejected the approach by Kraft, which still hopes it can clinch
a deal. []
Other food producers also gained after the Cadbury news. The
Anglo-Dutch giant Unilever <ULVR.L> was up 2.6 percent, Nestle
<NESN.VX>, the world's biggest food group, rose 0.8 percent and
Danone <DANO.PA> gained 4.3 percent.
The market also got support after the Group of 20 finance
ministers and central bankers said in a closing statement that
they would not remove economic stimulus until the global
recovery was well entrenched. []
Under proposed new global rules agreed by top central
bankers and regulators on Sunday, banks will have to set aside
more profits as a cushion against hard times and face limits on
how much debt they can run up. []
Financial stocks were among top gainers, with Barclays
<BARC.L>, Lloyds Banking Group <LLOY.L>, Royal Bank of Scotland
<RBS.L> and Societe Generale <SOGN.PA>, Natixis <CNAT.PA> and
Commerzbank <CBKG.DE> rising 0.1-4.3 percent.
Miners got strength from higher metals prices, which rose on
expectations of an economic recovery and growth in China. BHP
Billiton <BLT.L>, Anglo American <AAL.L>, Antofagasta <ANTO.L>,
Rio Tinto <RIO.L>, Xstrata <XTA.L> and Eurasian Natural
Resources <ENRC.L> rose 1.5-2.9 percent.
Lonmin <LMI.L> surged 6.5 percent after weekend press
reports that Xstrata said it asked its bankers to study the
viability of a new 3 billion pound bid for the platinum
producer. []
SIGNIFICANT MOVERS
Among other individual movers, Whitbread <WTB.L> rose 15
percent as Britain's biggest hotel operator said it was
confident on the full year after reporting a 2.6 percent fall in
underlying half year sales, hit by slower trade at its budget
Premier Inn chain. []
Surging sales at discount clothing chain Primark led owner
Associated British Foods <ABF.L> to nudge up its full-year
earnings forecast and boosted its shares as much as 6 percent to
a 14-month high. []
Spain's Telefonica <TEF.MC> was up 2.2 percent. It said on
Sunday that it had reached a deal with China Unicom <0762.HK>
whereby each would buy $1 billion worth of each other's shares
as part of a strategic alliance. []
Swiss Re <RUKN.VX>, the world's second-biggest reinsurer,
gained 3.3 percent after it said reinsurance prices were rising
overall and it was well positioned for the January 2010 renewals
season. []
U.S. markets are closed on Monday for a holiday.
Across Europe, Britain's FTSE 100 index <>, Germany's
DAX <> and France's CAC 40 <> were 1.3-1.4 percent.
(Reporting by Atul Prakash; Editing by Jon Loades-Carter)
