European shares advance as banks, miners climb

LONDON, Sept 12 (Reuters) - European shares rose early on Friday after slipping in the previous session, as miners tracked higher metals prices and banks advanced after Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) was forced into talks about a possible sale.

The sale talks boosted optimism that the financial sector's problems could ease. The U.S. investment bank's shares plunged more than 40 percent on Thursday, raising questions about its survival. The shares have lost more than three-quarters of their value since Monday and more than 90 percent since last November.

By 0726 GMT, the FTSEurofirst 300 index of top European shares was up 0.9 percent at 1,151.17 points. The benchmark closed 0.65 percent lower on Thursday and is down 24 percent so far this year.

Banks were one of the top weighted gainers on the index, with with BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) gaining 1.7 percent, Dexia (DEXI.BR: Quote, Profile, Research, Stock Buzz) rising 0.4 percent and Credit Agricole (CAGR.PA: Quote, Profile, Research, Stock Buzz) advancing 2.8 percent.

"The whole banking sector will be thrown into the spotlight in Europe, with Spain's Banco Santander musculing in on Deutsche Bank's bid for Postbank," said David Buik, strategist at BGC Partners.

Shares in Deutsche Postbank (DPBGn.DE: Quote, Profile, Research, Stock Buzz) rose 2.8 percent in a flurry of excitement about an expected sale of a big stake to Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) that could be announced on Friday.

Breaking weeks of silence, Banco Santander (SAN.MC: Quote, Profile, Research, Stock Buzz) has said it was interested in buying 100 percent of Postbank and could make an indicative offer subject to looking at Postbank's books.

Miners also advanced with a rise in key base metals prices. BHP Billiton (BLT.L: Quote, Profile, Research, Stock Buzz), Anglo American (AAL.L: Quote, Profile, Research, Stock Buzz), Vedanta Resources (VED.L: Quote, Profile, Research, Stock Buzz), Lonmin (LMI.L: Quote, Profile, Research, Stock Buzz), Kazakhmys (KAZ.L: Quote, Profile, Research, Stock Buzz), Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz), Antofagasta (ANTO.L: Quote, Profile, Research, Stock Buzz) and Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) rose between 1.1 and 4.8 percent. (Reporting by Atul Prakash)