Greek shares rise to outperform weaker European stock markets

* FTSEurofirst 300 slips, but Greek shares rise

* Fiat (Hanover: FIA1.HA - news) falls on emission concerns

* Bayer (LSE: 0P6S.L - news) down after making Monsanto (Hamburg: 1132157.HM - news) offer

* Deutsche Bank (LSE: 0H7D.L - news) cuts outlook on European shares (ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). Adds details, share prices)

By Sudip Kar-Gupta

LONDON, May 23 (Reuters) - The Greek bourse outperformed weaker European stock markets on Monday after Athens agreed a series of reforms that should pave the way for an agreement on bailout loans and debt relief talks.

The broader, pan-European FTSEurofirst 300 index closed down 0.5 percent, while the European STOXX 600 fell 0.4 percent, pulled down by drops in Fiat Chrysler and Bayer.

However, Athens' benchmark ATG equity index climbed 1.5 percent. It (Other OTC: ITGL - news) rose after Greek lawmakers approved tax increases and a new privatisation fund on Sunday and freed up the sale of non-performing loans in exchange for the prospect of much-needed bailout loans and discussions on debt relief.

Greek government borrowing costs dropped to a six-month low on Monday.

"The unlocking of more emergency loans for Greece has given some reassurance to investors concerning the country," said Naeem Aslam, chief market analyst at TF Global Markets UK Ltd.

Fiat Chrysler fell 4.4 percent after German newspaper Bild am Sonntag said the carmaker could be prohibited from selling cars in Germany if evidence of continued disregard of emissions rules is found.

A Fiat Chrysler spokesman declined to comment on the report but said all the carmaker's vehicles are compliant with existing emissions regulations.

Bayer dropped 5.7 percent after the German drugs and chemicals group made an offer to buy U.S (Other OTC: UBGXF - news) . seeds company Monsanto for $62 billion in a deal that would be financed with debt and equity.

"The very large equity portion of the deal is likely sustaining the negative investor sentiment. Further, we expect Monsanto to reject the offer initially, as such protracting the uncertainty around Bayer shares," Helvea said in a note.

Among tech stocks, Aixtron soared 16.2 percent after China's Fujian Grand Chip Investment Fund agreed to make a bid for the German semiconductor equipment maker.

Deutsche Bank's equity strategists struck a downbeat note on prospects for the European stock market, arguing that headwinds from possible U.S. interest rate rises and a slowdown in China would impact the market.

"We see no further upside for European equities for the rest of this year," Deutsche Bank wrote in a note, cutting its end-2016 target on the STOXX 600 to 325 points from 380 points - marking a fall of 3.4 percent from current levels.

Today's European research round-up

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Mike Dolan, Markets Editor EMEA. (Additional reporting by Danilo Masoni in Milan; Editing by Mark Trevelyan)