European shares rise further on banks, oils

LONDON, Nov 21 (Reuters) - European stocks extended gains in early trade on Friday, with oil shares turning positive and banks rising further as Bank or Ireland (BKIR.I) leapt on bid talk.

At 0838 GMT, the pan-European FTSEurofirst 300 index .FTEU3 was up 0.9 percent at 788.42 points after shedding 3.8 percent in the previous session.

Among energy shares, BP (BP.L) added 1.9 percent, BG Group (BG.L) put on 6 percent and Total (TOTF.PA) edged higher.

In the banks sector, Royal Bank of Scotland rose 4 percent, Barclays (BARC.L) added 3.7 percent and Santander (SAN.MC) put on 3.5 percent.

Shares in Bank of Ireland (BKIR.I) rose more than 18 percent on Irish media reports of a possible bid by a consortium to take up to a 60 percent stake in the institution as speculation grows that the government seeks to create consolidation in the sector.

Bank of Ireland was not immediately available for comment.

Citigroup shares, which took a whipping on Wall Street on Thursday, added 6 percent in Frankfurt (TRV.F). (Reporting by Rebekah Curtis)