European Factors -- Shares to open flat, commodities eyed

LONDON, June 24 (Reuters) - European shares were set to open little changed
on Tuesday after lacklustre sessions in the United States and Asia, with
investors cautious as the Federal Reserve begins a key rate meeting.

Futures for Germany's DAX FDXc1 and France's CAC FCEc1 were flat, while
futures for the DJ Euro Stoxx STXEc1 fell 0.1 percent.

Financial bookmakers in London see the FTSE 100 .FTSE adding 7 to 10
points. The commodity-laden FTSE may benefit from stronger crude oil prices,
which rose to about $137 a barrel.

The Dow and the S&P 500 ended effectively unchanged on Monday in thin trade
as renewed concerns about the outlook for financial shares offset gains in
energy stocks and news of a $4.4 billion takeover in the agricultural sector.
Asian stocks slipped overnight.

"It's going to be another one of those days when it's quite difficult to
paint a good picture, apart from in the commodity stocks and energy stocks,"
said a trader at IG Index.

----------------------MARKET SNAPSHOT AT 0639 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,318.00 0.01 % 0.07

NIKKEI .N225 13,849.56 -0.06 % -7.91

MSCI ASIA EX-JP .MIASJ0000PUS 497.12 -0.40 % -1.98

EUR/USD EUR= 1.5543 0.17 % 0.0026

USD/JPY JPY= 108.07 0.20 % 0.2200

10-YR US TSY YLD US10YT=RR 4.168 -- 0.00

10-YR BUND YLD EU10YT=RR 4.614 -- -0.01

SPOT GOLD XAU= $884.90 0.18 % $1.55

US CRUDE CLc1 $136.61 -0.10 % -0.13

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* Dow, S&P end flat as financials weigh, UPS drops late [ID:nN23289736]
* Japan Nikkei slips on economic worry, steel weighs [ID:nT6996]
* GLOBAL MARKETS-Oil gains on supply worries, Asian stocks slip [ID:nT54564]
* Dollar rises before Fed, euro zone data eyed [nT269637]
* TREASURIES-Sit tight in Asia before Fed, 2-yr auction [ID:nT215793]
* Gold rebounds on bargain hunting; Fed in focus [ID:nSP60600]
* Oil rises for 3rd session near $137 on supply worries [ID:nT34443]

COMPANY NEWS:

BG GROUP (BG.L)

British gas producer BG Group went hostile on Tuesday, putting a $13.1
billion bid for Australia's Origin Energy (ORG.AX) direct to Origin
shareholders, as it seeks to boost its position in Asia-Pacific's fast-growing
gas market. [ID:nSYD35560]

NYSE EURONEXT (NYX.PA)

In other news, NYSE Euronext (NYX.N) has announced a strategic relationship
between the State of Qatar and NYSE Euronext to build a new, internationally
integrated cash and derivatives exchange in Doha. NYSE Euronext is to purchase a
25 percent stake in the DSM for US$250 million in cash, the largest investment
ever made by NYSE Euronext in a foreign exchange.

BRADFORD & BINGLEY BB.L

UK restructuring specialist Resolution plans to consolidate some of
Britain's smaller banks and has been invited by investors in Bradford & Bingley
to consider using it to spearhead the plan, Resolution said on Monday.
[ID:nL23576601]

ROCHE (ROG.VX)

Roche announced a tender offer to increase its ownership stake in Chugai
(1964.T) was succesful. Its stake will increase from 50.1 percent to 59.9
percent. [ROG.VX-RTRS]

BHP BILLITON (BLT.L), RIO TINTO (RIO.L)

BHP may be forced to scrap its plan to rewrite the way billions of dollars
of iron ore are sold every year after rival Rio Tinto struck a benchmark deal
with China, analysts said on Tuesday.

Shares in Rio gained 3 percent in Australia after it announced a huge price
rise for iron ore shipped to China, giving it a chance to trumpet its defence
against a $163 billion takeover bid.

BHP increased its ore reserve at its Western Australia Iron Ore operation by
23 percent. [BLT.L-RTRS]

WENDEL (MWDP.PA), SAINT-GOBAIN (SGOB.PA)

France's AMF stock market watchdog has opened an inquiry into financial
company Wendel's acquisition of shares in building materials group Saint-Gobain,
Le Figaro reported on Tuesday. [ID:nL2423652]

NOKIA (NOK1V.HE)

Finnish cell phone maker Nokia Corp said it was making an offer to buy out
other shareholders of UK-based Symbian Ltd, which provides software for advanced
cellphones. [ID:nHEL006515]

BAYER (BAYG.DE)

Barr and Bayer have signed supply and licensing agreements for the launch of
generic Yasmin and Yaz oral contraceptives. [ID:nWEN6403]

DEBENHAMS (DEB.L)

British department stores group Debenhams (DEB.L) reported a 1 percent rise
in like-for-like sales for the past 10 weeks, seeking to reassure investors that
tough trading will not impact its ability to pay down debt. [ID:nWLA5216]

HBOS HBOS.L

Hedge funds sharply increased their bets against HBOS in the first days
after the City watchdog announced new emergency transparency rules designed to
clamp down on abusive short-selling and ease bank rights issues, the Financial
Times reported.

THOMAS COOK (TCG.L)

Europe's second-largest travel company, reported a 15 percent narrowing in
first-half losses on Tuesday and said it remains confident of meeting
expectations for the current year.

The group, created last year from the tie-up of German retailer Arcandor's
(AROG.DE) travel unit and Britain's MyTravel, also said Ludger Heuberg is to
step down as chief financial officer for family reasons, with Juergen Bueser
replacing him from July 1. [ID:nWLA5221]

HYPO REAL ESTATE (HRXG.DE)

Private equity investor JC Flowers is confident it will achieve a 24.9
percent stake in Germany's Hypo Real Estate, the maximum it had aimed for, in a
1.1 billion-euro ($1.71 billion) transaction.

SAFRAN (SAF.PA)

The French aero engine and telecom equipment maker made an unsolicited bid
for the secure ID business of Digimarc Corp (DMRC.O) for $300 million in cash,
topping an offer made by L-1 Identity Solutions Inc (ID.N) in March.
[ID:nL23153446]

DEUTSCHE POST (DPWGn.DE)

United Parcel Service Inc (UPS.N) warned on Monday that second-quarter
earnings would be below expectations, blaming high fuel prices and a sluggish
U.S. economy. [ID:nN23286160] Related news [DPWGn.DE-E]

(Reporting by Rebekah Curtis)