Stock futures jump on TXU takeover deal

Stock futures jump on TXU takeover deal

	Published : Mon, 26 Feb 2007 14:37 By : Agencies Print this Story

(AP) - U.S. stock futures advanced on Monday with a takeover of utility giant TXU stirring up consolidation hopes.

S&P 500 futures rose 4.4, to 1458.20 and Nasdaq 100 futures rose 7.5, to 1852.50. Dow industrial futures improved 43, to 12707.

Last week, the Dow industrials slipped 0.9 percent and the S&P 500 gave up 0.3 percent. The Nasdaq Composite closed up by 0.8 percent.

Crude oil futures rose 38 cents to $61.52 a barrel as Iran, criticized for its nuclear research program, test fired its first rocket into space, according to the country's state television.

Gold futures rose $1.20 to $687.90 an ounce.

Not much is on the U.S. economic calendar except a speech from Federal Reserve member Susan Bies. The dollar lost ground against the yen, while it was steady against the euro.

TXU soared 27 percent in Frankfurt after agreeing to be bought by a consortium led by Kohlberg Kravis & Roberts and Texas Pacific Group for $45 billion.

Company management and Colony Capital have agreed to buy Station Casinos for $8.8 billion, including $3.4 billion in debt.

Dow Chemical may receive attention on an unsourced report in a U.K. tabloid that private-equity bidders in the next few weeks will make a takeover bid valued at around $54 billion. Frankfurt-listed Dow Chemical shares rose 3 percent.

Citigroup named a new chief financial officer, Gary Crittenden. He held the same role at fellow Dow industrials component American Express. American Express has named Dan Henry as active chief financial officer while searching for a permanent replacement.

Citigroup separately is reportedly near a deal to boost its stake in Japanese brokerage Nikko Cordial.

The Financial Times reported that DaimlerChrysler is considering sapping its struggling Chrysler unit for a minority stake in General Motors.

Ericsson outbid Arris with a $1.4 billion offer for Norway's Tandberg Television.

Novartis declined in Swiss trading after the Food and Drug Administration said it wanted more information on the Galvus Type-2 diabetes drug.

Rival Merck & Co. was upgraded to buy at Citi on its outlook for Januvia, a diabetes drug that will compete with Galvus.

The Nikkei 225 closed Monday with slight gains in Tokyo, while the FTSE 100 rose 0.6 percent in London.