* Live markets: cpurl://apps.cp./cms/?pageId=livemarkets
* Pan-European index closes 0.1 pct higher in thin trading
* Parmalat surges after French owner launches buyout
* Bank stocks lag as Monte dei Paschi dampens mood
* Germany's DAX hits fresh one-year high
(Adds detail, updates prices at close)
By Kit Rees and Danilo Masoni
LONDON, Dec 27 European shares steadied on
Tuesday as trading in some markets resumed after the Christmas
break, with Parmalat soaring after its French owner announced a
buyout of the Italian dairy group.
The pan-European STOXX 600 index was up 0.1 percent
at its close but activity remained thin as many investors
remained on holiday for the remaining few days of 2016.
While the UK market was closed for a public holiday,
Germany's DAX rose 0.2 pct to touch a fresh year-high
and France's CAC also gained 0.2 percent.
"Markets are calm as thin holiday volumes are in play," said
Ipek Ozkardeskaya, analyst at London Capital Group.
Parmalat rose more than 10 percent, surging
slightly above the 2.80 euros offer price lodged by France's
Lactalis to buy up shares in the group that it does not already
A Milan-based trader said some investors may be hoping for a
possible sweetener of the bid from the French group which took
control of Parmalat in 2011.
Most sectors traded in positive territory, with banks
lagging after the European Central Bank (ECB) told Monte
dei Paschi di Siena it needed to plug a capital
shortfall of 8.8 billion euros, higher than a previous estimate
of 5 billion euros.
Trading in Monte Paschi was suspended until the conditions
of a state bailout of Italy's third largest lender become clear.
Italy's bank index fell 0.5 percent, led lower by
Banca Popolare Di Milano and Banco Popolare,
which fell 4 percent and 3.7 percent respectively.
Deutsche Bank fell 1.5 percent. The stock
shrugged off news that the ECB had lowered its minimum capital
requirements, giving the lender more leeway to structure bonus
payments and dividends.
The top STOXX gainer was Denmark's SimCorp, which
jumped more than 5 percent after signing a perpetual licence
agreement with Generali.
Mediaset climbed 2.8 percent with traders
speculating what French media group Vivendi could do
next after building up a stake of just below the 30 percent
threshold that would trigger a takeover bid.
Vivendi rose 0.7 percent.
(Reporting by Danilo Masoni and Kit Rees; Editing by Gareth