UK Stocks-Factors to watch on Monday, Feb 6

LONDON Feb 6 (Reuters) - Britain's blue chip index is seen opening flat on Monday, pausing after the recent rally as investors are reluctant to build up their positions ahead of a deadline for Greece to accept a new bailout or face a messy default that would hammer the European financial system.

Greece must tell the European Union by Monday whether it accepts the painful terms of a new bailout deal amid reports of divisions within the country's ruling coalition, while EU patience wears thin with political dithering in Athens over implementing reforms.

The UK's FTSE 100 index is expected to open 1 to 2 points lower, according to financial bookmakers, after rising 105 points to a seven-month closing high of 5,901.07 on Friday, recording its the best weekly performance in two months.

Boosting the index was a surprisingly strong U.S. employment report, which added to a sense the world' largest economy had a stronger-than-expected start to the year, fuelling expectations for global demand.

"With the bullish news out of the way, traders may be wondering if the market can stand on its own with only excessive liquidity to drive it higher," James A. Hyerczyk, a technical analyst at Autochartist, said.

While Hyerczyk saw "no immediate threat" to the uptrend, he warned the FTSE remained "vulnerable to a sizable correction" given the size of the rally from the recent bottom of 5,651.60.

The mining sector will be in focus on Monday as the Financial Times reports commodities trader Glencore International is set to offer a bigger-than-expected premium to seal its proposed $88 billion merger with global miner Xstrata Plc.

No major economic indicator is scheduled to be released in Britain or the United States on Monday.

* Stocks rise as U.S. jobs gain outweighs fears over Greece

* Nasdaq vaults to 11-yr high on surge in US jobs

* Japan's Nikkei hits 3-month high on U.S. jobs data

* Euro softens as Greek deadline looms

* Brent slips towards $114 on stronger dlr, Greece risk

* Gold rebounds after heavy loss; Asia rushes to buy

* Copper slips as Greece worries outweigh U.S. jobs

UK stocks to watch on Monday are:

XSTRATA PLC, GLENCORE

Shareholders in global miner Xstrata are set to receive 2.8 shares in commodities trader Glencore International for each Xstrata share, under the terms of their $88 billion proposed merger, the Financial Times reported on Monday.

The Telegraph wrote Xstrata and Glencore could face an unexpected competition hurdle to their proposed 50 billion pound ($79.00 billion) merger, with the EU poised to ignore an earlier ruling that would have avoided an investigation.

VODAFONE

Telecoms giant Vodafone is set to abandon attempts to merge its Greek business with rival Wind Hellas over concerns that the deal would not meet EU regulations, the Financial Times reported on Sunday.

TESCO

Tesco Bank has delayed the launch of its current account until next year, The Times reported. Its much vaunted arrival had been regarded as a symbolically important breakthrough in attempts backed by ministers to break up the dominance of the big five established UK banks, the paper added.

BARCLAYS

Barclays is set to reveal that it has exceeded the lending targets agreed with the British government when it unveils its annual results on Friday, The Independent reported.

EASYJET

Europe's second largest low-cost carrier releases monthly passenger statistics.

RANDGOLD RESOURCES

The west Africa-focused miner reports fourth-quarter results.

ALLOCATE SOFTWARE

The provider of workforce and compliance software reports first-half results.

WORKSPACE GROUP

The real estate small-cap reports its third-quarter trading update.

TODAY'S UK PAPERS

> Financial Times

> Other business headlines Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit* BridgeStation: view story .134(Reporting By Francesco Canepa; Editing by Hans-Juergen Peters)