European shares rose on Monday, rallying from near two-month lows after their biggest weekly loss in four months, with merger and acquisition activity in the drugs sector and some positive company news improving sentiment, Reuters reported. London-listed drugmaker Shire rose 2.2 percent after saying it was ready to recommend a new 31 billion pound ($53 billion) takeover offer from AbbVie, entering talks after receiving a fifth bid from the U.S. firm. Shire led the sector higher, with the STOXX Europe 600 Healthcare Index rising 0.9 percent to feature among the top sectoral gainers in Europe and helping the broader market. Shares in Shire touched an all-time high of 50.45 pounds. The broader stock market was also helped by sharp gains recorded by some individual companies. The FTSEurofirst 300 index of top European shares rose 0.6 percent to 1,360.28 points by 1055 GMT, having fallen 3 percent last week - its biggest drop since March.
