LONDON (TheDeal) -- European markets edged lower on Monday after Friday's record highs, in part over continued worries that Greece will fail to reach a deal with the eurozone over its rescue plan.

Greek prime minister Alexis Tsipras is scheduled to meet German chancellor Angela Merkel this afternoon for one-on-one talks after he warned that Athens will run out of money to pay its bills unless the European Union is prepared to distribute short term financial assistance to the country. If there is no deal in the coming days, Athens could be forced to introduce capital controls to prevent further capital flight.

In London, the FTSE 100 was down 0.41% at 6,994, while in Paris, the CAC 40 was down 0.91% at 5041.43. In Germany, the DAX was down 1.42% at 11,866.79. In Athens, the Athens Stock Exchange General Index was up 0.2% at 745.94.

In Milan, Italian tire-maker Pirelli  (PPAMF) rolled up 2.5% to €15.51, driven by an offer from China National Chemical to mount a €7 billion ($7.58 billion) takeover. CICC, or ChemChina, will start by acquiring Pirelli holding company, Camfin, which owns 26% of the company at €15 a share, followed by a general offer for the company. It will make the offer through a vehicle part owned by ChemChina and part by existing Camfin investors who include Pirelli chief executive Marco Tronchetti Provera, two Italian banks and Russian oil company OAO Rosneft. It will reduce Rosneft's stake in Pirelli.

In London, bus and rail company FirstGroup (FGROY), which runs the First Student school bus franchise in the U.S., sped up 4.05% to 98.90 pence after winning its second U.K. rail franchise extension in a week. Scotland-based FirstGroup will pay the U.K. government £68 million ($101.3 million) and promises to invest in new and more frequent trains to retain the First Great Western franchise between London and southwest England until 2019. Last week it got a one year extension on the smaller TransPennine Express.

Emerging markets bank Standard Chartered (SCBFF) was up 4.25% at 1,117 pence as it came under pressure to move its headquarters from London to a lower tax base such as Hong Kong or Singapore.

German bank Deutsche Bank (DB - Get Report) was up 1.63% at €32.12 as it considered a series of options including a separation of its retail banking and Post Bank businesses into a separately listed bank.

In Japan, the Nikkei was up 0.99% at 19,764, while in China, the Shanghai Composite Index rose 1.95% to 3,687.73 on hopes of further economic stimulus measures. Hong Kong's Hang Seng was up 0.49% at 24,494.51