DEALTALK-European IPOs pick up as equity markets calm down

* LBO trouble, slower growth have held back European IPOs

* CFAO, Hochtief, Unity Media to launch IPOs this year

* Europe could raise $10 billion in H1 2010

(For more Reuters Dealtalks, click [DEALTALK/])

By Daisy Ku and Tessa Walsh

LONDON, Nov 11 (Reuters) - Initial public offerings in Europe are gaining momentum, with three major IPOs set to launch before year-end and about $10 billion that could be raised in the next six months as volatile equity markets calm down.

But Europe's slower economic recovery coupled with more cautious investors, means the region is still likely to lag behind Asia and the United States.

"European investors are traditionally more risk-averse, and the IPO market is the ultimate acid test for their risk appetite," said a global head of equity capital markets (ECM) at a European bank, who asked not to be named.

The euro area and the United Kingdom economies are set to shrink 3 to 4 percent in 2009, according to estimates from Morgan Stanley, while China is set to grow 9 percent, and India 6 percent.