* Shire accepts Abbvie takeover offer
* Citigroup to pay $7 bln to settle investigation
* Futures up: Dow 57 pts, S&P 6.75 pts, Nasdaq 18.25 pts
By Chuck Mikolajczak
NEW YORK, July 14 U.S. stock index futures rose
on Monday, after the S&P 500 suffered its worst weekly decline
since April and the latest flurry of merger activity.
* London-listed drugmaker Shire Plc succumbed to an
increased 31 billion pounds ($53 billion) takeover offer from
Abbvie Inc, ending a long-running courtship largely
motivated by tax rates. U.S.-listed shares of Shire
rose 2.4 percent to $255.10 while Abbvie shed 0.7 percent to
$54.56 in premarket trade.
* Generic drugmaker Mylan Inc said it would buy
Abbott Laboratories' specialty and branded generics
business outside the United States in an all-stock transaction
valued at about $5.3 billion. Mylan shares jumped 9.6 percent to
$55 before the opening bell. Abbot shares rose 2.3 percent in
light premarket trade.
* Citigroup Inc shares rose 1.4 percent to $47.65 in
premarket after it agreed to pay $7 billion to settle a U.S.
government investigation into mortgage-backed securities the
bank sold in the run-up to the 2008 financial crisis. The bank
is also expected to post earnings on Monday.
* Earnings season will pick up speed this week, with 50 S&P
500 components scheduled to report. S&P 500 profits are
seen growing 6.1 percent in the second quarter, according to
Thomson Reuters data, down from the 8.4 percent growth forecast
at the start of April. Revenue is seen up 3 percent.
* Analysts are looking to earnings for confirmation that the
economy recovered in the second quarter from the impact of a
harsh winter in order to justify current stock prices.
* S&P 500 e-mini futures were up 6.75 points and fair
value - a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the contract
- indicated a higher open. Dow Jones industrial average e-mini
futures rose 57 points and Nasdaq 100 e-mini futures
added 18.25 points.
* Exelixis shares surged 11.2 percent to $3.70
after the company's experimental skin cancer treatment being
developed with Roche helped people with an advanced
form of skin cancer live longer without their disease worsening
when used in combination with another treatment, the companies
* European shares rose, boosted by M&A activity in the
pharmaceutical sector and rallying from near two-month lows
after their biggest weekly loss in four months.
* Asian shares rose as investors put aside concerns about
euro zone banks and looked forward to corporate earnings and a
raft of global economic events, including testimony from the
head of the Federal Reserve.
(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)