European equities recover from four-month low, Greek shares slip

* Pan-European FTSEurofirst 300 index up 0.3 pct

* Greek debt crisis hits ATG share index

* Volatility index hits highest since January

By Atul Prakash

LONDON, June 16 (Reuters) - European shares recovered after hitting a four-month low in choppy trading on Tuesday, with analysts and traders saying that the Greece-led sell-off and a weaker euro had created some buying opportunities for investors.

The pan-European FTSEurofirst 300 index was up 0.3 percent at 1435 GMT, having earlier hit its lowest level since mid-February. The European volatility index rose 3.3 percent to its highest since January.

Analysts cited the weaker euro, which was down 0.5 percent against the U.S. dollar, as a positive for European exporting companies.

"A weaker euro is a big plus for company profits and that is providing some support to European companies," said KBC senior economist Koen De Leus, adding that Tuesday's recovery is not sustainable.

"I see another correction of at least 5 percent in the coming weeks as it seems that Greece and its creditors are still far away from an agreement. The Greek situation will continue to keep the market volatile."

Greek shares fell 4.8 percent and the country's banking index dropped 8.9 percent as Greece and its creditors hardened their stances after a breakdown in talks aimed at preventing a default and possible euro exit.

The leader of Germany's centre-left Social Democrats (SPD), Thomas Oppermann, said he saw no willingness from the Greek government to reach an agreement with creditors and that he doubted there would be a deal on Thursday.

Laith Khalaf, senior analyst at Hargreaves Lansdown (LSE: HL.L - news) , said: "The can of Greek debt has been kicked down the road so many times there comes a point when it has to be confronted, and it looks like that time may well be in the next week or so. A Greek exit from the euro zone is looking ever more likely."

Among other sharp movers, International Consolidated Airlines Group fell 1.5 percent after a slump at rival Air France KLM weighed on European airline stocks. Air France (Paris: FR0000031122 - news) shares fell 3.4 percent after the company said it was dropping some routes to cut costs.

Henkel (Other OTC: HELKF - news) slipped by 1 percent after a report saying that it had lost its bid to buy a Procter & Gamble hair-care business.

U.S. cosmetics group Coty (NYSE: COTY - news) won auctions to acquire three businesses from P&G for as much as $12 billion, a source familiar with the matter told Reuters, including P&G's hair-care operations. (Additional reporting by Liisa Tuhkanen and Alistair Smout; Editing by Janet Lawrence and David Goodman)