European Factors--Shares seen recovering on AIG rescue

(Adds details, futures; updates snapshot)

PARIS, Sept 17 (Reuters) - European stocks were set to stage a tentative
recovery on Wednesday after sinking to 3-year lows in the previous session,
after embattled American International Group (AIG.N) got an emergency $85
billion rescue package from the U.S. Federal Reserve.

At 0632 GMT, futures for the DJ Euro Stoxx STXEc1, for Germany's DAX
FDXc1 and for France's CAC FCEc1 were up between 1.2 percent and 1.5
percent, while financial bookmakers expected Britain's FTSE 100 .FTSE to open
up 68 to 70 points, or as much as 1.4 percent.

Investors were also relieved after Wall Street firm Morgan Stanley (MS.N)
posted a 3 percent decline in quarterly profit, but results beat expectations
and the shares rose in extended trade on Wall Street.

The U.S. Federal Reserve, which left interest rates unchanged on Tuesday,
will lend up to $85 billion to AIG for two years in exchange for a 79.9 percent
equity stake. It comes just two days after U.S. authorities refused to bail out
investment bank Lehman Brothers Holdings Inc LEH.N, forcing it to file for
bankruptcy.

"With good old AIG in the U.S. being bailed out, we expect some rebound in
today's trading. But is shouldn't be long lasting and we continue to stay away
as further bankruptcies in the U.S. are pending, which will also impact European
financials," said Heino Ruland, analyst at FrankfurtFinanz, in a morning note.

Barclays (BARC.L) agreed to buy several parts of Lehman for $1.75 billion.

Also helping the mood on Wednesday, Japan, Australia and India pumped $33
billion into money markets to ease a funding squeeze stemming from the global
credit crisis.

The FTSEurofirst 300 .FTEU3 index of top European companies tumbled 2.6
percent on Tuesday, adding to a 3.6-percent slide on Monday, as investors grew
more jittery about the fate of AIG in the wake of the bankruptcy of Lehman and
as a sharp fall in commodity prices hammered energy and mining stocks.

The FTSEurofirst 300 has lost 28 percent so far in 2008, hit by worries over
the impact of the credit crisis, rising inflation as well as recession fears.

----------------------MARKET SNAPSHOT AT 0626 GMT----------------------

LAST PCT CHG NET CHG

S&P 500 .SPX 1,213.60 1.75 % 20.9

NIKKEI .N225 11,749.79 1.21 % 140.07

MSCI ASIA EX-JP .MIASJ0000PUS 378.82 0.91 % 3.40

EUR/USD EUR= 1.4186 0.51 % 0.0072

USD/JPY JPY= 105.89 0.59 % 0.6200

10-YR US TSY YLD US10YT=RR 3.514 -- 0.08

10-YR BUND YLD EU10YT=RR 4.046 -- 0.03

SPOT GOLD XAU= $781.10 0.46 % $3.55

US CRUDE CLc1 $94.08 3.21 % 2.93

-----------------------------------------------------------------------

* Wall Street up on AIG rescue talk, futures rise [ID:nN16436289]

* GLOBAL MARKETS-Asia stocks, oil rally on AIG rescue [ID:nHKG10537]

* Nikkei up 2.1 pct on relief over Fed's AIG rescue [ID:nT11442]

* Dollar jumps vs yen on AIG rescue news [ID:nT39467]

* TREASURIES-Yields climb on AIG rescue package [ID:nT33373]

* Oil rebounds over $3 after sell-off on AIG rescue [ID:nSP154562]

* Gold up on commods rally, AIG rescue, platinum jumps [ID:nT266267]

* Shanghai copper pares gains despite AIG relief [ID:nSP94364]

COMPANY ITEMS:

ALLIANZ (ALVG.DE)

American International Group Inc (AIG.N) rejected an investment offer by
Allianz two days before accepting a U.S. bailout, according to Bloomberg, citing
two people with knowledge of the bid. For details, see: [ID:nWEN8236]

Separately, Allianz does not see the sale of its Dresdner Bank unit
threatened by recent market turbulence and says its exposure to Lehman Brothers
and AIG is limited. For details, see: [ID:nWEA9653].

MUNICH RE (MUVGn.DE)

Munich Re is interested in a number of AIG assets, its CEO told business
daily Handelsblatt. For details, see: [ID:nWEA9650]

UBS (UBSN.VX)

UBS is prepared to weather the current market turmoil, the group's chief
executive said in a TV interview late on Tuesday. "We are glad that we have
taken the painful measures early -- the capital increase, the strong risk
reduction," UBS CEO Marcel Rohner told Swiss TV channel SF1. For details, see:
[UBSN.VX-LEN-RTRS]

CREDIT SUISSE (CSGN.VX)

Credit Suisse (CSGN.VX) has agreed to buy back frozen auction-rate
securities and pay a $15 million fine to settle a multi-state probe that it had
misled investors, the North American Securities Administrators Association said
on Tuesday.

For details, see: [CSGN.VX-LEN-RTRS]

BNP PARIBAS (BNPP.PA)

BNP Paribas said it had an exposure of around 400 million euros ($568
million) to Lehman Brothers LEH.P, the U.S. bank that has filed for bankruptcy
protection. BNP Paribas said it had net derivative claims of around 200 million
euros to Lehman and a bank loan exposure of $250 million (180 million euros).

SOCGEN (SOGN.PA)

Societe Generale said it has net senior debt exposure on Lehman in a nominal
principal amount of 76 million euros, and said replacement risk in Lehman is
estimated at around 400 million euros.

ROCHE (ROG.VX)

Roche is confident it can secure financing at a reasonable price for the
acquisition of Genentech DNA.N, despite current market turmoil, the Swiss
drugmaker's chief executive said on Tuesday. For related news, click on
[ROG.VX-LEN-RTRS]

INDITEX (ITX.MC)

The Spanish retailer Inditex reported first-half net profit up 3 percent to
406 million euros ($576.2 million) on Wednesday, slightly below analysts'
forecasts. A Reuters poll of 11 analysts had forecast net profit of 416 million
euros on sales of 4.55 billion euros for the period that stretches from Feb. 1
to Apr. 30. For details, see: [ITX.MC-LEN-RTRS]

CREDIT AGRICOLE (CAGR.PA)

Credit Agricole said it has credit exposure to Lehman Brothers of less than
20million euros, and said it does not hold Lehman bonds.

WOOLWORTHS WLW.L

The British sweets-to-DVDs retailer under pressure after last month
rejecting a bid for its retail business, on Wednesday posted a record first-half
underlying loss and suspended its dividend payment. For details, see:
[WLW.L-LEN-RTRS]

VIRGIN ATLANTIC VA.UL

Virgin Atlantic said on Wednesday it would bid for Gatwick Airport as part
of a consortium. For details, see: [ID:nWLA9691]

(Additional reporting by Peter Starck in Frankfurt)

(Reporting by Blaise Robinson)