European shares rose in early trading on Monday, helped by some well-received earning updates and by a rally in Intesa Sanpaolo shares following the Italian bank's decision to drop plans to take over insurer Generali.
The pan-European STOXX 600 index was up 0.1 per cent. Gains were capped a sharp drop in London Stock Exchange and Deutsche Boerse shares after LSE said its proposed merger with the German exchange was unlikely to be approved by the European Commission.
Intesa Sanpaolo soared more than 5 per cent, leading gainers on the STOXX. Italy's biggest retail bank abandoned plans to join forces with Generali, saying a tie-up would not create value for its shareholders. Generali fell 5 per cent.
Among top gainers were Rotork , up 4.5 per cent, after the British company increased its total dividend and said orders rose, while business supplies distributor Bunzl also rose sharply after a better-than-expected rise in profits.