British and European shares recorded their highest close since 2000 on Monday, lifted by consolidation talk in the banking sector and mining stocks, while United States data showed March consumer spending held up better than expected.

The FTSE 100 of Britain's leading shares rose to their highest close since September 2000, lifted by consolidation talk in the banking sector and mining stocks.

Royal Bank of Scotland climbed 2.4% after it, Spain's Santander and Dutch-Belgian group Fortis said last week they were eyeing a break-up bid for ABN AMRO - just days before ABN's exclusive talks with Barclays were due to end. Barclays rose 17%.

The FTSE 100 ended 53.8 points at 6516.2.

European shares recorded their highest close since December 2000 on Monday, led by a surge in Dutch bank ABN AMRO.

ABN AMRO reported double-digit earnings gains and this, combined with a consortium of three banks emerging as possible rivals to Barclays in its bid for the bank, sent ABN shares up 5.7%.

The pan-European FTSEurofirst 300 index rose 1.17% to close at 1571.81 points.

In Germany, the DAX index ended at 7338.06 points, up 125.99, while France's CAC-40 index closed at 5861.97 points, up 72.63.

The Swiss market index closed at 9269.9 points, up 92.42 and Italy's or All Share Mibtel index closed at 33,786 points, up 306.