1:00PM NY, 5:00 PM Frankfurt European stocks closed down, dragged by GlaxoSmithKline.
European stock markets closed mostly in the negative territory Monday, dragged lower by a steep decline in the shares of GlaxoSmithKline and weakness in the bank sector. Strength among resource stocks and a takeover bid for EMI failed to lift the sentiment. Shares of pharmaceutical giant GlaxoSmithKline dropped 5% after research showed that diabetes drug Avandia significantly increased cardiovascular risk. Banking group UniCredit dropped 5.7% as it announced it was buying Italian peer Capitalia for 21.8 billion euros.

On the positive side, mining giants Anglo American and Kazakhmys rose more than 3.2%. EMI shares soared 9.3% after the British music group recommended a 2.4 billion-pound cash offer from private equity group Terra Firma. Elan surged 18% after the Irish biotechnology firm and development partner Wyeth said they would start a Phase 3 trial of Bapineuzemab for trading patients with mild to moderate Alzheimer's disease. The German DAX Xetra 30 added 0.2% at 7,619.31, the U.K. FTSE 100 slipped 0.1% at 6,636.80 and the French CAC-40 lost 0.2% at 6,089.91.


11:30AM Market averages traded in a tight range. China''s $3 billion investment in Blackstone Group gave a boost.
U.S. stocks traded in a tight range on merger Monday, reflecting profit-taking. Tech stocks were some of the most notable gainers amid merger speculation in internet shares. Sirius Satellite (SIRI: chart) rose 3%. News of a $25 billion takeover deal for mobile phone company Alltel Corp. (AT: chart) supported the telecommunications sector. Shares in Alltel advanced 7%. Big-cap stocks were trading lower. Alcoa (AA: chart) was a leading decliner on the Dow, falling 1.5%.

In other corporate news, Blackstone confirmed an agreement under which the Chinese government will buy $3 billion of non-voting common units at a purchase price equal to 95.5% of the IPO price. The deal signals China''s determination to earn higher returns on reserves. Blackstone said it hopes to raise as much as $7.75 billion from its IPO as well as China.

In earnings-related news, Campbell Soup Co. (CPB: chart) rose 2.5% after it posted higher-than-expected quarterly profit and lifted its full-year earnings forecast. Lowe''s Cos. (LOW: chart) fell 3.2% after it posted Q1 earnings that missed estimates by a penny and cut its 2007 profit outlook. The Dow Jones was up 8.94 points, or 0.07%, at 13,565.47. The Standard & Poor''s 500 Index was up 3.96 points, or 0.26%, at 1,526.71. The Nasdaq Composite Index was up 21.46 points, or 0.84%, at 2,579.91.


9:45AM U.S market averages opened mixed on consolidation of recent gains.
Wall Street opened mixed Monday, as investors turned to profit-taking after the strong market performance last week. However, a flurry of merger deals generated some positive sentiment. Alltel (AT: chart) rose 7.3% after agreeing to be acquired by TPG Capital and a Goldman Sachs unit for $27.5 billion, or $71.50 a share. In another multibillion-dollar deal, General Electric Co. (GE: chart) said that it will sell its plastics division to Saudi Basic Industries Corp. in a deal worth $11.6 billion. GE added 0.5% in early trading.

Further in M&A action, Atlas Energy Resources (ATN: chart) jumped 14% as it agreed to buy 2,150 natural gas wells from DTE Energy for $1.23 billion. On the earnings news front, Lowe''s (LOW: chart) dropped 3% after reporting a 12% profit drop, citing the housing market and last year''s hurricane rebuilding activities. In midmorning trading, the Dow Jones industrial average fell 6.91, or 0.05%, to 13,549.62. The Standard & Poor''s 500 index rose 1.72, or 0.11%, to 1,524.47, and the Nasdaq composite index gained 9.40, or 0.37%, to 2,567.85. Bonds were little changed Monday, with the yield on the benchmark 10-year Treasury note at 4.81%, the same as late Friday.


9:00AM Stock futures pointed to a flat opening, with merger activity in the spotlight.
U.S. stock market futures indicated a flat market opening on Monday after a week of solid gains, followed by a weekend of deal making. Among pre-market highlights, Alltel (AT: chart) rose 7% as it agreed Sunday to be taken private by investment firms TPG Capital and GS Capital Partners for $27.5 billion, or $71.50 a share. In other corporate news, General Electric (GE: chart) agreed to sell its plastic business to Saudi Basic Industries in a $11.6 billion deal. Hologic (HOLX: chart) agreed to acquire Cytyc (CYTC: chart) for $6.2 billion, or $16.50 a share in cash and 0.52 of Hologic shares. The deal represents a 33% premium to Friday''''s close.

Further in merger-and-acquisition news, Atlas Energy Resources (ATN: chart) agreed to buy 2,150 natural gas wells producing from the Antrim Shale from DTE Energy (DTE: chart) for $1.23 billion in cash. Yahoo (YHOO: chart) is expected to offer $1 billion to buy Bebo, a leading U.K. social networking site. Virgin Media (VMED: chart) jumped 9% amid speculations that private-equity groups may try to buy the U.K. cable operator. On the earnings-news front, Lowe’s (LOW: chart) posted a 12% profit drop, citing the housing market and last year''''s hurricane rebuilding activities. There is no major economic news due out today. Statistics on housing sales and durable-goods orders are due out later in the week. S&P 500 futures rose 0.2 of a point at 1,528.10 and Nasdaq 100 futures rose 2.75 points at 1,908.50. Dow industrial futures rose 16 points.


8:15AM Alltel agreed to be taken private for $27.5 billion.
Alltel Corp. (AT: chart) announced an agreement on Sunday to be taken private by investment firms TPG Capital and GS Capital Partners in a deal worth $27.5 billion. The buyout of the nation''s largest U.S. cell-phone provider by geographic area will be the biggest in the U.S. telecommunications industry.

Alltel has 12 million subscribers, the fifth-largest among major cell-phone companies. It has 15,000 employees. Alltel''s CEO Scott Ford said no changes are planned in staffing, and he will still be chief executive. The offer values the company at $71.50 per share in cash, a premium of 10% over Friday''s close. The deal is subject to Alltel''s shareholders’ approval. The deal, which is expected to close by March 2008, must also be approved by regulators.


7:30AM NY-6:30 PM Mumbai Sensex gains Monday on strong banking, metal and oil stocks.

The Sensex on BSE ended Monday 115.19 points, or 0.81%, higher at 14,418.60.

The market-breadth was positive as 1,395 stocks advanced, 1,194 declined and only 74 stocks remained unchanged. Of the 30 stocks in the Sensex, 16 advanced, while the rest declined. The turnover on BSE was Rs 5,559 crore, compared to Rs 4,696 crore on Friday. On NSE, the turnover was Rs 9,918 crore, much lower than Rs 9,810 crore on Friday.

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