* FTSEurofirst 300 index close up 0.4 pct * Bayer gains on drug green light * Telecom makers fall after Sony Ericsson outlook By Joanne Frearson LONDON, March 20 (Reuters) - European shares closed higher on Friday as Bayer (BAYG.DE) gained after it received a green light for a drug, while telecommunication makers fell as Sony Ericsson (6758.T) gave a bearish outlook. The pan-European FTSEurofirst 300 .FTEU3 index of top shares closed 0.4 percent higher at 717.88 points in a choppy session with stocks rising to as high as 719.25 points and falling to as low as 704.84 points. "The market is see-sawing today. What we have seen here is investors downsizing their positions taking half of their profits out, but still leaving some positions in," said Joshua Raymond, market strategist at City Index. "Investors are still fairly confident that the market could go higher, but yet again they do not want to take the risk in case the market turns ... there are still concerns about bank liquidity and return on investment," added Raymond. Bayer (BAYG.DE) jumped 11.3 percent after the group received a green light for it's key new drug Xarelto from a U.S. panel, putting it on track to win approval in its largest market. [ID:nLK351784] "The positive outcome is critical for sentiment and we expect Bayer to regain some of the multiple that it lost prior to the advisory committee," analysts at Morgan Stanley said in a research note. Energy stocks were major gainers as crude CLc1 held above $51 a barrel a day after surging 7 percent following the Federal Reserve's plan to pump another $1 trillion into the recession-hit economy. BG Group (BG.L), BP (BP.L), Tullow Oil (TLW.L) and Premier Oil (PMO.L) were 0.2-6.7 percent higher. Miners rose as copper gained 0.4 percent. Anglo American (AAL.L), Antofagasta (ANTO.L), BHP Billiton (BLT.L), Eurasian Natural Resources Corporation (ENRC.L), Rio Tinto (RIO.L) and Xstrata (XTA.L) were up 1.5-5.9 percent.

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