HEADLINE STOCKS - U.S. stocks to watch on Dec 3

NEW YORK, Dec 3 (Reuters) - U.S. stocks to watch on Monday:

ACTIVISION INC (ATVI.O)

Shares of Activision Inc (ATVI.O) surged 28 percent to $28.30 in electronic trade on Monday after Vivendi said it will merge its video games unit with Activision in a $9.85 billion deal. Please see [ID:L03340494]

The deal values Activision at $27.50 per share, or a 24 percent premium to its Friday closing price of $22.15.

E*TRADE FINANCIAL CORP (ETFC.O)

Shares of E*Trade Financial Corp (ETFC.O) fell 9.8 percent to $4.15 after Banc of America Securities downgraded the online bank and brokerage despite a $2.55 billion infusion from hedge fund Citadel Investment Group. Please see [ID:BNG14586].

E*Trade closed at $4.60 in Friday trade on the New York Stock Exchange.

WESTERN UNION CO (WU.N)

Shares of Western Union Co (WU.N), the world's largest payment transfer company, could be worth as much as $35 per share, or 55 percent more than their closing price on Friday, according to Barron's, citing some investors and an analyst. [ID:N02370653]

Western Union shares closed at $22.60 on the New York Stock Exchange.

BLACKSTONE GROUP (BX.N)

TRIBUNE CO. TRB.N

A weakening economy and heavy debt loads are causing trouble for many companies that went private in leveraged buyouts since the start of 2006, and could hurt private equity firms, weekly publication Barron's reported. [ID:N02341959]

Shares of Tribune Co, whose LBO is pending, closed on Friday in NYSE trade at $31.04, and shares of Blackstone closed at $22 on Friday.

PARKERVISION INC. (PRKR.O)

ParkerVision Inc. (PRKR.O), a wireless technology company valued at about $250 million, has attracted a short-seller who is "convinced that ParkerVision is worthless," Barron's reported on Sunday. [N02328581]