** Shares in Hexagon HEXAb.ST rise around 7% after the Swedish industrial technology group agreed to sell its design & engineering business to Cadence CDNS.O for 2.7 billion euros ($3.16 billion)

** "While we do think some investors may want to hear further rationale as to why D&E would not naturally fit into RemainCo, this level of value unlock is likely to be well received by the market," J.P.Morgan says

** It adds that it also expects the move to shift the debate around Hexagon's valuation on a stand-alone basis following the Octave spin

** If gains hold, the stock will see its biggest one-day rise since late July; it is at the top of Europe-wide STOXX 600 .STOXX index

($1 = 0.8542 euros)

(Reporting by Elviira Luoma)

((elviira.luoma@thomsonreuters.com))