March 7 (Reuters) - European shares fell on Thursday as investors turned cautious ahead of the European Central Bank's interest rate decision, while Virgin Money soared after Britain's Nationwide Building Society agreed to potentially buy the lender.
The pan-European STOXX 600 was down 0.3% by 0815 GMT, with most sectors trading in the red except healthcare and insurance.
Automobiles and parts sub-index was the top loser, dropping 1.1%, on track for its biggest decline in seven weeks.
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 be speaking at the press conference at 1345 GMT.
Virgin Money UK jumped 35.7%, set for its best day on record after Nationwide Building Society agreed to buy it in a potential 2.9 billion pounds ($3.69 billion) all-cash deal.
Hugo Boss slipped 17.0% to the bottom of the benchmark index, as the German fashion house forecast operating profit for 2024 below market expectations.
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)
