* STOXX 600 down 0.5 pct at close
* Deutsche Bank leads banks lower on rights issue plans
* French carmaker PSA climbs after deal to buy GM's Opel
* Standard Life, Aberdeen rally after setting tie-up terms
* Miners lead sectoral fallers as metal prices slip
(Updates prices at close, adds details)
By Kit Rees and Danilo Masoni
LONDON, March 6 European shares pulled back on
Monday with banking stocks led lower by a slump in Deutsche Bank
shares after the German heavyweight lender unveiled an 8
billion-euro cash call as part of a major reorganisation.
Losses, however, were limited by fresh deal-making activity
in the auto and asset management sectors, which helped the STOXX
600 fall just 0.5 percent and stay just over half a
percentage point below a 15-month peak hit last week.
Deutsche Bank dropped nearly 8 percent, making
the stock the biggest drag on the pan-European index and pulling
the European banking index down 1.2 percent. Peers
Credit Suisse and Italy's Banco BPM also fell
more than 4 percent.
Deutsche Bank, which also announced an overhaul of its
business structure and plans to list its asset management arm to
help raise extra cash, will start the rights issue in two weeks.
JPMorgan hailed the new strategic direction taken by the
bank as steps "in the right direction", but kept its neutral
rating on the stock, saying more details on the financial impact
of the planned measures were needed.
PSA Group rose 2.7 percent after the French
carmaker agreed to buy Opel from General Motors in a 2.2
billion-euro deal that is expected to generate cost savings of
1.7 billion euros.
The deal will create a regional giant to challenge market
leader Volkswagen, which fell 0.8 percent.
Merger activity also buoyed asset managers after Aberdeen
and Standard Life set terms of their planned 11
billion pound all-share tie-up that could pressure rivals to
follow suit as industry margins sag.
Aberdeen and Standard Life rose 4.2 and 5.7 percent
"We see a strong industrial logic for the merger in terms of
scale, capabilities and cost savings," said Ben Cohen, analyst
at Canaccord Genuity.
"There must also be a reasonable likelihood of a
counter-bid, for one or both of the parties, given accelerating
consolidation in the industry".
Europe's Basic Resources index was a weak spot, down
2.2 percent, with big miners such as Glencore, Anglo
American and Antofagasta all falling more than
2 percent, tracking a decline in metal prices.
Among outstanding movers was Ultra Electronics,
which rose 4.8 percent to a record high after the British
defence contractor reported its biggest sales growth in six
(Reporting by Kit Rees and Danilo Masoni; Editing by Alison