US STOCKS-M&A activity lifts index futures

                                

                                
 * HP offers $24 a share to acquire 3PAR
                                
 * Campbell may bid for United Biscuits: report
                                
 * 3M CEO says may double acquisition money spent in 2010
                                
 * Futures up: Dow 37 pts, S&P 500 5 pts, Nasdaq 11.5 pts
                                
 * For up-to-the-minute market news see [STXNEWS/US]
                                
 (Adds quote)
                                
 By Ryan Vlastelica
                                
 NEW YORK, Aug 23 (Reuters) - U.S. stock index futures rose
on Monday, following two weeks of losses for the S&P and Dow,
as sentiment was lifted by several potential mergers and
deals.
                                
 Hewlett-Packard Co <HPQ.N> bid $24 a share in cash for data
storage company 3PAR Inc <PAR.N>, sending the stock up 37
percent to $24.70 in premarket trading. HP, a Dow component,
fell 1 percent to $39.45. For details see [ID:nN23188685]
                                
 Campbell Soup Co <CPB.N> may make a $2.3 billion break-up
bid for Britain's United Biscuits, which is owned by private
equity firms PAI Partners and Blackstone Group LP <BX.N>,
according to the London-based Sunday Times. [ID:nLDE67L05L]
                                
 And George Buckley, the chief executive of 3M Co <MMM.N>,
said the Dow component may spend about $2 billion on
acquisitions in 2010, twice its previous estimate.
[ID:nTOE67M07U]
                                
 "All this M&A activity is a sign of confidence that the
situation out there has a silver lining about it," said Andre
Bakhos, director of market analytics at Lek Securities in New
York.
                                
 "Nothing seems to be of heavy impact, but these things are
all adding up."
                                
 Last week Intel Corp <INTC.O> moved to acquire software
maker McAfee Inc <MFE.N> for $7.7 billion. [ID:nN19252526]
                                
 S&P 500 futures <SPc1> rose 5.6 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> rose 37
points, and Nasdaq 100 futures <NDc1> rose 11.5 points.
                                
 Concerns about the strength of the recovery have
intensified in recent weeks, with weak economic data adding to
the cautious tone and depressing trading volume levels.
                                
 A $20 billion compensation fund for economic victims of the
BP Plc <BP.L> <BP.N> Gulf oil spill opens for business on
Monday amid accusations that the rules established by its
administrator are unfair. U.S.-listed shares of BP slid 1
percent to $36.03 in premarket trading. [ID:nN22130561]
                                
 October crude futures edged slightly higher to $74.12 per
barrel, though prices were close to last week's six-week lows
on bulging inventories. [ID:nSGE67M035]
                                
 The Federal Reserve plans to reduce American International
Group Inc's <AIG.N> credit line by about $3.6 billion in a sign
of growing confidence that the government bailed-out insurer
can emerge from taxpayer support, Bloomberg said, citing a
person with knowledge of the proposal.
                                
 U.S. stocks slipped on Friday and the S&P 500 and Dow fell
for a second straight week on persistent concerns the recovery
has tapered off. For the week, the S&P 500 was down 0.7 percent
and the Dow slipped 0.9 percent, while the Nasdaq gained 0.3
percent on some positive outlooks in technology shares.
                                
(Editing by Padraic Cassidy)   ((ryan.vlastelica@thomsonreuters.com; Tel: +1 646-223-6014;
Reuters Messaging: ryan.vlastelica@reuters.com@reuters.net))