* FTSEurofirst 300 index gains 0.8 percent
* Bullard's bullish U.S. comments boost market
* Edison jumps on shareholder deal report
* For up-to-the minute market news, click on []
By Joanne Frearson
LONDON, Feb 28 (Reuters) - European shares rose on Monday
gaining for the third straight month after a Federal Reserve
official gave a bullish U.S. outlook, easing investor fears high
oil prices would hurt growth.
The pan-European FTSEurofirst 300 <> index of top
shares closed 0.8 percent higher at 1,169.24 points and rose for
the second consecutive session after a sell-off last week caused
by the political unrest in oil-rich Libya.
Investor sentiment improved after James Bullard, St. Louis
Federal Reserve president said on CNBC that the U.S. economy was
in very good shape for 2011 and that oil prices rising on Middle
East tensions were not currently a drag on the recovery.
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"Markets have taken Bullard's comments positively," said
Philippe Gijsels, head of research at BNP Paribas Fortis Global
Markets in Brussels. "But, it is a double-edged sword."
"If the outlook gets too bullish for the economy,
quantitative easing could be reduced and if there is more
nervousness in the Middle East, the markets could react
negatively."
Bullard also repeated comments he made last week that he
would like to dial back the Fed's $600 billion bond buying
program.
Industrial stocks were in demand, with the STOXX Europe 600
Industrial Goods & Services <.SXNP> up 1.9 percent.
German conglomerate Siemens <SIEGn.DE> advanced 3.6 percent
on talk of a potential listing of its lights unit Osram. The
company declined to comment.
Elsewhere Danish wind turbine maker Vestas <VWS.CO> rose 3.6
percent after traders pointed towards an order to supply
turbines for a 252-megawatt German offshore wind project.
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SAP GAINS
German business software maker SAP <SAPG.DE> was 0.9 percent
higher, with traders citing a positive Barclays Capital note.
"We liked that the strength (last quarter) was driven by
good results in Europe and a return to large deals,"
Frankfurt-based traders quoted Barclays analysts as saying.
"We believe the new products ... have the potential to
create a new equity story for the company that is broader than
just the plain IT spending recovery on which investors are
currently focussing," they said.
Essar Energy <ESSR.L> was up 3.5 percent, also boosted by
Credit Suisse initiating coverage of the Indian-focused oil and
gas business with an "overweight" rating and 600 pence price
target.
On the downside, Associated British Foods <ABF.L> fell 5.9
percent after it said discount fashion retailer Primark's
operating margins would be lower in its first half and would
stay under pressure in its second half. []
HSBC <HSBA.L> lost 4.7 percent after Europe's biggest bank
reported annual profits that short of expectations and cut its
profitability targets. []
Across Europe, the FTSE 100 <> index slipped 0.1
percent, Germany's DAX <> was up 1.2 percent and France's
CAC 40 <> was 1 percent higher.
(Reporting by Joanne Frearson; Editing by Louise Heavens)
