LONDON (TheDeal) -- European stock indices fell sharply on Monday after the failure of the latest attempt to forge an agreement between Greece and its international creditors.

A Sunday meeting -- which had previously been billed as a last-ditch attempt to hammer out an accord to stop Greece defaulting on a €1.5 billion ($1.68 billion) payment due to the International Monetary Fund by month-end -- lasted less than an hour. Talks will resume when finance ministers meet in Luxembourg on Thursday. Some see the meeting as the last attempt to reach a compromise and avoid a Greek default and the country's ultimate exit from the eurozone.

The Athens General Index was down 4.63% by late morning local time, with National Bank of Greece (NBG) and Bank of Piraeus (BPIRF) leading the index lower.

In Frankfurt, the DAX was down 1.19% at 11,063.56. In Paris, the CAC 40 was down 0.82% at 4,862.76. In London, the FTSE 100 fell 0.70% to 6.737.17.

At 3 p.m. in Brussels, European Central Bank President Mario Draghi will make a quarterly statement to the European Parliament's Economic and Monetary Affairs Committee. His comments will be closely watched, especially on the impact of the Greek crisis on the wider eurozone.

In Frankfurt, Metro (MTAGF) slumped after reaching a €2.8 billion deal to sell its Kaufhof department-store chain to Canada's Hudson's Bay. Metro investors had hoped that the disposal -- the result of on-off efforts to sell the business stretching back several years -- would result in a special dividend, but the seller will use the proceeds to cut debt.

Acquisitive apartments owner Deutsche Annington Immobilien fell after agreeing to spend €1.9 billion buying residential real estate peer Sudewo from Patrizia Immobilien. Shares in the seller rose in Frankfurt and Zurich.

In London, Dragon Oil (DRAGF) climbed after reaching a takeover agreement with majority shareholder Emirates National Oil. Emirates will pay £1.7 billion ($2.6 billion), for the stock it doesn't already own. Dragon was recently trading at 731.50 pence, up more than 9% on Friday's close but well below the 750 pence offer price, indicating that investors see obstacles to the deal closing.

Aberdeen Asset Management fell -- as of late morning it was the worst performer on the FTSE 100 -- after announcing it will issue £100 million of non-voting shares to Japan's Mitsubishi UFJ Trust and Banking.

Majestic Wine fell sharply after reporting a 12% slide in full-year pretax profit and a 1.9% increase in U.K. same-store sales. The company, which recently spent £70 million buying Naked Wines and installed the target's boss as CEO, is conducting a review into how it can boost profitability and will report back with its first-half results announcement.

In Milan, Monte dei Paschi di Siena, the world's oldest lender, fell close to 4% after announcing it had shifted 99.6% of stock in a rescue rights issue, raising almost €3 billion. It sold the shares at €1.17 -- the stock was recently trading at €1.73.

Asian stocks predominantly ended the day in negative territory because of Greek worries.

Cairn India rose sharply on the National Stock Exchange of India and majority shareholder Vedanta edged lower after the two agreed on a $2.8 billion deal for Vedanta to buy out the shares it doesn't already own. Minority shareholders at both buyer and target must approve the deal.

Both companies' ultimate parent, Vedanta Resources (VEDL) - Get Report, rose in London.

In Hong Kong, the Hang Seng closed down 1.53% at 26,861.81, with mainland Chinese indices falling further. The Shanghai Composite was down 2.0% at 5,062.99.

In Hong Kong, Italian fashion house Prada (PRDSY) shares fell 4.9% after a Chinese consumer downturn pushed quarterly earnings down 44%. The company said unfavorable market conditions in Greater China show "no signs of abating."

In Tokyo, the Nikkei 225 edged down 0.9% to 20,387.79 and the Topix closed up 0.03% at 1,651.92.