Caspian Sunrise Share News (CASP)

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* STOXX 600 rises hesitantly

* ACS gains after Atlantia confirms talks over Abertis

* Abertis shares down 3.8 pct

* Countrywide sinks 20 pct

LONDON, March 8 (Reuters) - European shares inched up inearly deals on Thursday, as dealmaking gathered pace and fearsof a trade war faded, although some disappointing earningsupdates weighed.

The pan-European STOXX 600 edged up 0.1 percent by0830 GMT, with defensive sectors leading the way while oil andmaterials stocks weighed.

Merger and acquisition news drove big stock moves.

Spanish construction firm ACS rose to the top ofthe STOXX, up 9.3 percent after reports it was in talks withItaly's Atlantia to break up Abertis in aneffort to avoid a bidding war for the highway concessionscompany.

Atlantia, which confirmed preliminary talks with ACS overAbertis, shares also gained 3.8 percent, while Abertis fell 3.9percent.

Meanwhile Renault shares fell to the bottom ofFrance's CAC 40 after the French government said itwasn't prepared to sell its stake in the carmaker.

The stock had touched its highest since Dec 2015 onWednesday after Reuters reported Nissan was in talks to buy theFrench government's stake.

Earnings took their toll on some stocks.

French supermarket Casino dropped 5.8 percentafter its results, with traders pointing to disappointing freecash flow and earnings figures.

Hugo Boss shares fell 4.9 percent after theGerman fashion house struck a more cautious tone on profit as itkept up investment in revamping stores and its website.

Boskalis Westminster sank 10.6 percent, the worstSTOXX 600 performer, after the construction and engineering firmreported full-year earnings and said it would be a "challenge"to match 2017 results.

Outside the large-cap space, UK estate agency Countrywidesank 21 percent after it reported a 22.5 percent drop infull-year earnings, bruised by poor performance in its mainsales and lettings business.(Reporting by Helen Reid, Editing by Danilo Masoni)