Buoyant autos and HBOS helped European shares end at their best level in 29 months on Tuesday, but losses in heavyweight Vodafone and nerves ahead of a Federal Reserve statement limited market gains. Vodafone stock shed 2.5 percent on concern it may be drawn into its second U.S. takeover attempt of the year after the Wall Street Journal said the telecoms giant had given its U.S. joint venture partner, Verizon Communications, approval for a possible $40-billion-plus bid for Sprint. Danske Bank was another decliner, off 5.8 percent after the Danish company said it had bought two Irish banks from National Australia Bank for 10.4 billion Danish crowns ($1.86 billion) in its first major push outside its Nordic home market. But Michelin was a bright spot, powering 3.3 percent higher after the company said it would pass higher energy costs onto the consumer by raising its tyre prices in Europe by an average of 5 percent by July. By 1700 GMT, the FTSEurofirst 300 index of pan-European blue chips was up 0.1 percent at 1,039.2 points, representing its highest closing level since July 9, 2002. The narrower DJ Euro STOXX 50 index was 0.2 percent firmer at 2,934.1 points. --More 2241 Local Time 1941 GMT
