European shares led higher by firmer French stocks

LONDON, Dec 15 (Reuters) - European shares rose on Tuesday to bounce back from stinging losses in the previous session, as gains in major French companies propped up the region's equity markets.

The pan-European FTSEurofirst 300 index, which fell to its lowest level in two-and-a-half months on Monday due to a slump in oil prices, rose 1.3 percent while the euro zone's blue-chip Euro STOXX 50 index advanced 1.6 percent.

The French CAC-40 equity index outperformed, rising 1.7 percent. The Paris market was helped by French pharmaceuticals group Sanofi (NasdaqGM: GCVRZ - news) , which climbed 4 percent after it said it would swap some assets with Boehringer Ingelheim.

There was also a 7.5 percent surge in car parts company Faurecia (Swiss: EO.SW - news) after it agreed to sell a division to Plastic Omnium. The rise helped to lift the European autos and parts sector.

However, shares in German chipmaker Dialog Semiconductor (Xetra: 927200 - news) slumped 17.2 percent, dragging down peers such as ARM and AMS (LSE: 0QWC.L - news) , after Dialog slashed its revenue guidance. (Reporting by Sudip Kar-Gupta; Editing by Alistair Smout)