European shares extended early gains on Tuesday, with a blue chip index breaking above a resistance level buoyed by M&A news and slightly better-than-feared manufacturing data.
Vodafone, the world's second largest mobile operator, surged 4.5 percent, boosted by a report saying Verizon Communications and AT&T have been working together on a breakup bid for the British group.
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At 1023 GMT, the FTSEurofirst 300 index of top European shares was up 1 percent, or 11.79 points, at 1,200.71, with Vodafone alone representing 1.15 points of the rise.
The euro zone's blue chip Euro STOXX 50 index, meanwhile, was up 1.2 percent at 2,656.03 points, piercing the 2,650 points level that had been seen as a key resistance level by traders.