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Virgin Money UK jumps on 2.9 bln pound buyout offer

Hugo Boss down after disappointing outlook

Teleperformance plunges on cautious FY24 outlook

Rentokil soars on FY profit jump, Terminix synergy target raise

STOXX 600 flat

Updated at 0910 GMT

March 7 (Reuters) - European shares were subdued on Thursday amid investor caution ahead of the European Central Bank's interest rate decision, while British lender Virgin Money soared on a potential buyout offer.

The pan-European STOXX 600 .STOXX was flat and off its record highs hit in previous session, with more than half of the sectors trading in the red amid a slew of corporate earnings.

Automobiles and parts .SXAPfell 1.1%, leading sectoral declines, and on track for its biggest decline in seven weeks, while healthcare shares .SXDP were the top gainers with a 0.8 rise.

Virgin Money UK <UKVMUK.L> jumped nearly 36% and was set for its best day on record after Nationwide Building Society NBS.L agreed to buy it in a potential 2.9 billion pounds ($3.69 billion) all-cash deal.

All eyes will be on ECB's rate decision, due at 1315 GMT, where the central bank is expected to keep interest rates unchanged at record highs. ECB President Christine Lagarde will speak at the press conference at 1345 GMT.

Investors expect the ECB to cut interest rates three or probably four times in 2024. 0#ECBWATCH

"Germany is the currency bloc's economic powerhouse, yet it has failed to show sustainable signs of recovery this year, after the economy contracted in Q3," said Kathleen Brooks, research director at XTB.

"This is the dilemma facing the ECB today: sound tough on inflation, or sound concerned about growth."

German industrial orders fell much more than expected in January due to base effects, the federal statistics office said on Thursday.

In corporate updates, Hugo BossBOSSn.DEfell 19.2% to the bottom of the benchmark index, as the German fashion house forecast operating profit for 2024 below market expectations.

TeleperformanceTEPRF.PA was also a bottom performer, declining 18.6%, after the call-centre operator forecast limited growth for 2024 as it missed its full-year revenue target.

LufthansaLHAG.DE slipped 0.9% after it gave a subdued outlook for 2024 as the German airline struggles with costly labour disputes, offsetting the travel boom.

On the flip side, Rentokil InitialRTO.L surged 12.4% after the British pest control firm reported a 50% jump in annual profit and said it was targeting more savings from the integration of Terminix.

Insurer AvivaAV.L was up 5.8% on announcing a 300 million pound ($382 million) share buyback after strong performance in general and health insurance helped it post a 9% rise in 2023 operating profit.

Meanwhile, British house prices rose by 1.7% in the year to February, slowing from January's 2.3% increase, data from mortgage lender Halifax showed.

(Reporting by Shubham Batra in Bengaluru; Editing by Rashmi Aich and Varun H K)

((Shubham.Batra@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.