Good morning traders!

I hope you are all enjoying a great Easter weekend and not amongst the hordes who are unfortunately trapped in traffic jams in the fight to get home.

Just a basic thread this week because of the disruption of the holiday, but the usual features will all be back in strength next weekend.

I'll see you in the morning with the breaking news of the day.

G.

MARKETS (Mar 24)
FTSE 100 4,922.5 up 12.1
FTSE 250 7,144.0 up 56.6
DJIA 10,442.87 down 13.15
Nasdaq Comp 1,991.06 up 0.84
S&P 500 1,171.42 down 1.11
Gold 425.55 usd (426.35 usd)
Oil - Brent Apr 53.93 usd (53.04 usd)

BREAKING NEWS
* Greg Dyke, former director-general of the BBC, approached to run Endemol, one of Europe's largest independent television companies, ahead of a 1.75 bln stg flotation planned for the autumn - Sunday Telegraph
* Secretive Livingstone brothers hire UBS to advise on their proposed 1 bln stg-plus bid for SOMERFIELD - Sunday Times
* Baugur will this week spark a three-way bidding war for SOMERFIELD by producing a new offer for the UK supermarket chain worth more than 1 bln stg - The Business
* SOMERFIELD, which revealed two bid approaches of up to 1.1 bln stg from property developers last week, has not had its store portfolio revalued for nine years; many City analysts estimate the stores could be worth up to 300 pence a share - Mail on Sunday
* Robert Tchenguiz, the Iranian property tycoon, believed to have ruled out a sale and leaseback of SOMERFIELD's estimated 800 mln stg property portfolio after emerging at the centre of a three-way bidding war for the supermarket chain - Friday Times
* Property entrepreneur Robert Tchenguiz to launch a 205 pence-a-share bid for SOMERFIELD within days after joining forces with Apax Partners and Barclays capital - Friday Mail
* Sir Ken Morrison, the embattled boss of WILLIAM MORRISON SUPERMARKETS, under fire from the Association of British Insurers, whose members are among the stock market's largest investors - Observer
* Two senior executives of GOLDSHIELD GROUP, Ajit Patel and Kirti Patel, arrested and released on police bail after being interviewed by the Metropolitan Police; the two men were called in as part of an investigation into suspected price fixing of generic medicines by drugs companies supplying the National Health Service - Sunday Telegraph
* Betfair, the controversial online betting exchange, exploring a potential 700 mln stg stock market float that would land its two co-founders, Andrew Black and Edward Wray, fortunes of more than 100 mln stg each and create windfalls for dozens more shareholders - Sunday Times
* Jonathan Bloomer will receive a payoff of up to 1.8 mln stg after he was ousted as chief executive of PRUDENTIAL in a dramatic boardroom coup last week - Sunday Telegraph
* Two of the nation's mealtime favourites, HP Sauce and Lea & Perrins, could be on their way back into British ownership in a bidding war that might reach 500 mln stg; Danone instructs Lazard to sound out potential buyers for the sauces along with other brands in the HP Foods division - Mail on Sunday
* Enel may ditch Wind IPO in favour of 13 bln eur (8.9 bln stg) sale - The Business
* BRITISH ENERGY talking to leading City institutions about private funding for a nuclear power building programme to solve the UK's looming energy crisis - The Business
* Secret DTI team gives green light for 10 new nuclear plants - Independent on Sunday
* UK power utilities in talks with bankers to buy ROYAL DUTCH/SHELL's Coryton gas power station in Essex for about 350 mln stg, according to one of three companies approached - The Business
* YELL will this week attempt to transform its presence on America's West Coast by joining the auction for TransWestern Publishing, the directory company, likely to fetch more than 535 mln stg - Sunday Times
* Kroll, the administrator to Allders, investigating the sale of the Croydon store in south London only months before the company collapsed; MINERVA, the majority shareholder in Allders, bought the Croydon freehold - one of the company's few assets - last April for 49 mln stg - Sunday Times
* An end to the slide in the UK housing market expected to be called this week when two big forecasters reveal a sharp jump in property deals from pent-up demand; Nationwide and Hometrack expected to say prices have bottomed out, with all signs pointing to a sustained but sober recovery to coincide with the top of the interest rate cycle - The Business
* Figures due to be published tomorrow by Hometrack will show that house prices in prime London boroughs rose in March - Sunday Telegraph
* Nationwide sees static home prices; Hometrack national survey will tomorrow show a modest rise in house prices - Sunday Express
* Easter weekend high street sales figures look set to nosedive as retailers continue their struggle to cope with the slowdown in consumer spending; warm weather and an early break add to tough trading - Sunday Express
* TELEWEST exploring the sale of Flextech, its content business; Telewest's management understood to have attached an ambitious price tag of up to 800 mln stg to Flextech - Sunday Times
* Bidders for FIRST CALGARY, the oil and gas exploration company that put itself up for sale for 1.7 bln stg late last year, raise concerns about the steep price tag - Sunday Telegraph
* MANCHESTER UNITED will this week attempt to undermine Malcolm Glazer's 800 mln stg takeover approach by unveiling a rise in ticket prices that will swell the club's coffers - Sunday Times
* MG Rover's Powertrain engine plant in Longbridge, Birmingham, will close next January with the loss of 1,200 jobs as engine production is shifted to China - Sunday Express
* Michael Howard tries to limit potentially severe damage to the Conservative general election campaign by brutally barring senior party figure, Howard Flight, from defending his seat following his claim that the Tories had a hidden agenda to slash public spending - Saturday FT
* Tory deputy chairman, Howard Flight, sacked after admitting that the scale of his party's planned spending cuts is being concealed because "whatever the fine principles, you have to win an election first" - Friday Times
* Blair kept Brown and EU heads in dark on US choice of Wolfowitz for World Bank - Saturday FT
* Geoff Hoon, Defence Secretary, hands a 1 bln stg helicopter contract directly to AugustaWestland, ignoring calls from rival manufacturers that the order should be put out to competition - Friday Times
* BAE SYSTEMS awarded an 834 mln usd contract to make howitzers, or modern-day cannons, for the US armed forces
* Uninsured BP has to pay for Texas blast; disaster that killed 15 workers could set back oil giant 1 bln usd, including litigation costs - Saturday Telegraph
* BP faces litigation risk after massive refinery fire - Friday Independent
* Kelvin MacKenzie, former Sun editor who is chairman of the WIRELESS GROUP, understood to be talking with CVC over funding to take the radio company private - Mail on Sunday
* LAND SECURITIES challenges BT GROUP's phone monopoly to new homes - Independent on Sunday
* WHITEHEAD MANN drops to AIM listing - Observer
* EUROTUNNEL to plead for its life with bankers; directors appeal for debt-for-equity swap to close 6 bln stg gap - Observer
* Jaguar chooses Havas, the French advertising agency, to handle its advertising account; move deals a blow to rival WPP, which previously handled the account - Friday Times
* US drugs regulators expected later today to give GLAXOSMITHKLINE and partner Roche the green light to start selling Boniva, a new treatment for osteoporosis; Glaxo yesterday trumpeting results of a major study that revealed its asthma inhaler Advair was more effective than its closest competitor Symbicort, which is made by ASTRAZENECA - Friday Mail
* Stephen Wicks, founder of COUNTRY & METROPOLITAN, in line for a 10 mln stg windfall after a 72 mln stg recommended takeover bid from Gladedale, a private property group backed by HBOS - Friday Times
* Former UNILEVER boss Niall Fitzgerald in line for a record-busting pension; he will pocket 852,000 stg a year from September, when he reaches 60
* UNILEVER paid Niall FitzGerald, its former co-chairman, 1.2 mln stg to quit earlier than he had planned, the Anglo-Dutch consumer goods giant reveals - Friday Independent
* ABERDEEN ASSET MANAGEMENT says it would counter sue its former investment trust, Real Estate Opportunities, for 17 mln stg of outstanding fees and compensation, if the trust goes ahead with its planned legal action against it - Friday Independent
* GUARDIAN MEDIA GROUP puts a "not for sale" sign on its radio business; move comes after a takeover approach from rival CHRYSALIS - Friday Guardian
* Institutional shareholders at CHRYSALIS are warning it against pursuing its interest in the radio assets of GUARDIAN MEDIA GROUP; shareholders believe the business is overvalued, and that Chrysalis risks overpaying for other radio assets it may target - Independent on Sunday
* FDM announces plans to float on AIM with an expected value of 18.1 mln stg, making the company the latest beneficiary of the new buoyancy in the IT recruitment market - Saturday FT
* MONITOR OIL, an Aberdeen-based company started by a Norwegian financier, hoping to tap the financial markets for 45 mln stg as part of a listing on AIM next month - Saturday Times
* ASHBOURNE HEALTHCARE, the nursing home group, in exclusive talks to buy Ridgmont Care Homes, a rival operator, for about 100 mln stg - Saturday Times

FRIDAY PRESS COMMENT
Times
DIRECTORS' DEALINGS: WPP (Sir Martin Sorrell, chief executive, sells 1.67 mln shares at 617-1/2 pence each to settle about 10 mln stg of tax claims; finance director sells 1.4 mln stg worth of shares) - RUMOUR OF THE DAY: PARAMOUNT (understood to be close to announcing a recommended 35 pence-a-share offer from a consortium led by Guy Naggar, its chairman) - SMALLER STOCK TO WATCH: DURLACHER (shares will resume trading, possibly next week, once it announces the date of a shareholder meeting to approve its takeover by Panmure Gordon) - STOCK MARKETS: LONDON CLUBS INTERNATIONAL (Genting lifts stake to 22.18 pct), EGG (speculation that PRUDENTIAL's new chief executive could restart the Egg sale process) - Tempus: J SAINSBURY (avoid), PREMIER OIL (avoid), COUNTRY & METROPOLITAN (shareholders can happily accept the terms being offered)

Guardian
Market forces: RENEWABLE ENERGY (news filters through that it has been in Australia testing a new generator that produces power from waves), ALEXANDER MINING (dealings expected to start on AIM on April 4), PERSONAL GROUP (management will be meeting potential investors next week which is likely to provide a fillip)

Telegraph
STANDARD CHARTERED (hopes that the Khoo family of Singapore has received an approach for its 13.4 pct stake; talk was that a bank had offered 12 stg a share but the family had rejected it, holding out for 14 stg), SCOTTISH & NEWCASTLE (renewed takeover talk), ARM HOLDINGS (chatter that Dutch company ASML is considering buying a stake in the group), DAT GROUP (Microsoft tie-up talk), CAMBRIAN MINING (speculation it will create a spin-off vehicle to house its coal interests) - QUESTOR: VEDANTA (risk of corporate governance problems; if investors want exposure to the copper, zinc and aluminium markets, there are more reliable miners, including BHP BILLITON, and RIO TINTO), WHITEHEAD MANN (existing shareholders should hang on, others should steer clear; risks are just too high for now), PREMIER OIL (worth holding on)

Express
MARKET REPORT: T&F INFORMA (talk of a tie-up with Germany's Springer Group to create a new chapter as a blue-chip publisher), COMPUTACENTER (renewed concerns about the likely impact of falling demand for PCs this year) - SHARE WHISPER: SAREUM (hopes a takeover will be announced soon; ZYZYGY, which has a 20 pct stake, is said to be contemplating a sizeable acquisition) - WHO'S DEALING: OYSTERTEC (director sells 500,000 shares at an average 24.375 pence)

Independent
THE INVESTMENT COLUMN: CAIRN ENERGY (stagnation is likely in the share price for some time, but existing shareholders should hold on for the long term), ABERDEEN ASSET MANAGEMENT (buy), BPB (hold) - MARKET REPORT: STANDARD CHARTERED (rumours that BARCLAYS has offered the Khoo family up to 1,200 pence a share for its 13 pct stake), CLARKSON (director sells 62,000 shares at 930 pence each)

Mail
MARKET REPORT: STANDARD CHARTERED (talk it has rejected a 15.6 bln stg - or 12 stg-a-share - bid from BARCLAYS), SCOTTISH & NEWCASTLE (revived gossip that SABMILLER is considering launching a 6 stg-a-share cash offer), TRIPLE PLATE JUNCTION (publishes a bullish report on its impressive exploration portfolio in Papua New Guinea; drilling has already begun at Crater Mountain in PNG; further upbeat announcements are in the pipeline)

SATURDAY PRESS COMMENT
FT
THE LEX COLUMN comments on Bloomer's departure from PRUDENTIAL, Economic miracles, EU services directive, US private equity group Ripplewood - LOMBARD: Martin Dickson comments on J SAINSBURY (the business is taking its first steps forward, but the share price has already raced towards a successful outcome that is by no means guaranteed), UNILEVER (pay-off granted to Niall Fitzgerald looks too generous), Clashing AGMs - PRUDENTIAL changes style but not direction; the group's new chief executive, analysts say, will focus on tackling two important issues - the possible sale of EGG and a review of Jackson National Life (MONEY & BUSINESS p.3) - Weekend share watch: BAE SYSTEMS (discount to European peers likely to narrow, and it would not be surprising if its shares do not reach 300 pence by the fourth quarter of 2005), MAYBORN (it is unlikely ever to be seen as snazzy - but the latest results have sent a wake-up call to the market), RESTAURANT GROUP (looks reasonably cheap - analysts) - MY PORTFOLIO: Nick Louth comments on NETELLER (though the prospective price/earnings ratio for 2005 is only around 20 at the current price of 630 pence, this is one gazelle I wouldn't chase too much higher until the final results, due on April 5, are in)

Mail
INVESTMENT EXTRA: UNITED CLEARING (if it makes 1.5 mln stg next year, which looks reasonable, the rating drops to under 11 times, which is cheap for a growth company)

Independent
Private Investor: Sean O'Grady sells BT GROUP, says O2 is a hold rather than a buy, and expects SERCO to see its former peak of 600 pence before too long - No Pain, No Gain: Derek Pain contemplates adding MYHOME INTERNATIONAL to the portfolio; he alights on GOALS SOCCER CENTRES to replace the departing MERRYDOWN, and says MACLELLAN will, for the time being, remain in the portfolio

Telegraph
QUESTOR COLUMN: ROYAL BANK OF SCOTLAND (buy), LAIRD GROUP (trading on 11 times forecast earnings with a 2.8 pct yield, there is further to go), HEADLAM (buy)

Times
RUMOUR OF THE DAY: Robert Tchenguiz understood still to be interested in SFI GROUP even though he missed the deadline for formal offers for the cash-strapped pub company

SUNDAY PRESS COMMENT
The Business
THE ALCHEMIST: Clem Chambers tips AGGREKO - THE BEST OF THE BROKERS: EMAP (price war offers chance to invest in media group), MOTHERCARE (set to deliver even more bad news), Continental AG (on a roll, defying slowing market) - AIM INVESTOR: QUALCERAM (supply chain review announcement could provide a buying opportunity); EUROPEAN NICKEL (still a speculative buy) - BENCHMARK: Grant Clelland comments on J SAINSBURY (too soon to say if Sainsbury is out of the woods, but the signs are encouraging), Casino, Time Warner/Adelphia

Mail on Sunday
MIDAS: SPORTINGBET (a speculative buy) - COMPANIES AND MARKETS: HIT ENTERTAINMENT (Dutch TV tycoon John de Mol refusing to back Apax bid unless he can negotiate a separate merchandise deal); SECRET DEALINGS: AVESCO (Dan Nickols of Old Mutual bought 450,000 shares for his UK Select Smaller Companies fund in late December and in mid-March took the fund's holding to 525,000 shares, or 3.22 pct of the company)

Sunday Express
BROKERS' NOTES: BHP BILLITON (JP Morgan reiterates overweight stance with 12-month target of 810 pence), O2 (Bear Stearns maintains underperform rating), GUS (Dresdner Kleinwort retains buy, but lowers target to 1,025 pence from 1,045), KENSINGTON (hold from buy - Teather & Greenwood), MEARS GROUP (12-month accumulate and long-term buy - Charles Stanley)

Sunday Times
JUDGMENT DAY: SHOULD YOU BUY SHARES IN AGA FOODSERVICE Andy Brough, fund manager at Schroders, says hold, while Tim Steer, fund manager at New Star, says avoid for now - INSIDE THE CITY: John Waples comments on FIRST CHOICE HOLIDAYS (conjures travel for a new age), ANGLO AMERICAN (Anglo's future is not just about financial sums, but about a licence to operate); MARKET MOLE: PUNCH TAVERNS (Ashton Bradbury picks up 180,000 shares to take his Old Mutual UK Select Mid Cap fund's holding to 680,000 - or 0.7 pct) - DIRECTORS' DEALS: CSR (co-founders sell stock); SHORE CAPITAL (chairman nets 6 mln stg after disposing of 15 mln shares at 40 pence)

Sunday Telegraph
WILLIAM MORRISON SUPERMARKETS ('I'm not going,' Sir Ken Morrison tells James Hall he intends to ignore calls to name his successor or give any indication of when he will renounce the chair of his beleaguered supermarket group) - Equity View - BLUE CHIP VALUES: FRIENDS PROVIDENT (keep buying), WILLIAM MORRISON (a sell); Look who's trading: BRITISH AMERICAN TOBACCO (three directors sell shares, but on a price to earnings ratio of 13 against 17 for GALLAHER and 15 for IMPERIAL, BAT is worth holding); SMALL CAP COMMENT: DOMESTIC & GENERAL (investors who followed our advice to buy have made a 50 pct gain and should take some but not all of the profits), FAYREWOOD (should be further to go), ARK THERAPEUTICS (still a risky long-term buy), SPRING GROUP (buy) - NUMBERS GAME: Tony Jackson is happy to leave the (housebuilding) sector to the attention of others; he would not bet on PERSIMMON being bid for either)

Observer
THROG STREET: Richard Wachman comments on DIXONS (profits warning or no profits warning, Dixons feels like a company that is going to have to push water uphill for the foreseeable future), Citigroup (Wachman has it on impeccable authority that Citigroup held talks with Deutsche Bank last year with a view to taking it over)

MARKETS (Mar 28)
Nikkei 225 11,792.30 up 31.20
Hang Seng closed

EASTER MONDAY BREAKING NEWS

* BARCLAYS' suffers cashpoint crisis as clock goes back not forward - Telegraph
* BP suffers triple blow to its reputation in the US with Alaskan ruling - FT
* EIDOS to hold crunch meeting with counter-bidder SCI ENTERTAINMENT tomorrow
amid controversy over payment to Elevation to encourage it to make bid - Mail
* OFT to decide this week on competing proposals to takeover LSE - Telegraph
* L&G's venture capital arm tipped to buy 10 hospitals from BUPA for 100 mln
stg - Times
* MANCHESTER UNITED could earn an additional 15 mln stg a year by dismantling
its Premier League contract and striking its own media rights deal: E&Y - FT
* EMAP is looking to develop further radio brands from its business, and is
considering launching FHM Radio - FT
* Phil Edmonds to float new company, Southern African Iron and Titanium, a
spin-off from CENTRAL AFRICAN MINING & EXPLORATION - Guardian
* WHITE NILE shares to resume trading this week after Sudan deal completion -
Guardian
* EUROTUNNEL moves to tackle 6.4 bln stg bank debts - Express
* EDF plans 2 bln stg boost for London's electricity network - Times
* Orange to offer free calls, texts incentives to pre-pay customers - Telegraph
* Support services firm Amey UK -- now owned by Spain's GRUPO FERROVIAL -- has
moved back into profit, according to figures to be released this week - FT
* Scottish biotech firm ProStrakan aims for 100 mln stg float - Times
* Proposed sale of fashion retailer LK Bennett hangs by a thread - Times
* Four on shortlist to buy Italy's MTS electronic dealing platform - FT
* SunGard set to agree 11 bln usd bid from private equity team - FT
* UK property firms secretly buying up billions of pounds worth of capital
losses to reduce expected cost of becoming real estate investment trusts - FT
* MPs calling on the UK Government to create a new post of Supermarkets
Ombudsman - Times
* 15,000 top jobs could be lost to India as City outsources skilled work -
Times
* Hometrack's UK house prices survey shows only 0.1 pct decline in March, the
smallest decline for six months - Times
* UK household debt adds to rise in bank write-offs: Bank of England - FT
* Flat rate tax 'would lift economic growth': Adam Smith Institute - Telegraph

EASTER MONDAY PRESS COMMENT

FT
Lex Column: Hollywood animation (As more capital flows into digital animation,
returns will naturally start to fall); Insurance (For investors, the risk of a
debt rating downgrade is not so nearly unnerving as trying to read the mind of
regulators); Arab telecoms (The rich Gulf states of UAE, Qatar, and Bahrain,
which account for half of the free float look unattractive; big, poor markets
with low penetration look better value; Egypt fits the bill, with Orascom
looking the best mobile play)

OUTLOOK UK consumption data takes centre stage in coming week

LONDON (AFX) - It may not be the busiest week on the UK data front but there will be enough for sterling markets to chew over, particularly as a number of releases will provide crucial insight into the state of consumer spending.
Figures from a range of bodies, such as the Bank of England and the Nationwide, the UK's largest building society, will be closely monitored to see if consumption remains on the wane or shows signs of renewed strength, as the central bank's governor Mervyn King reckons.
The consumption data in particular will be crucial as investors position themselves for the May meeting of the interest rate-setting Monetary Policy Committee, where another rise may be on the cards. An April hike is not expected.
"The bottom line is that the direction and path of interest rates will continue to be determined by the data and in that respect, the news since the (March MPC) meeting has underlined the risk of a sharp slowdown in the growth of household spending," said Capital Economics managing director Roger Bootle.
The coming week's data, he added, is likely to cement that view.
The Confederation of British Industry's monthly distributive trades survey into the retail sector in March, released on Wednesday, is likely to paint a stronger picture than that in February. But Bootle predicts another fall in the level of net consumer credit and the number of mortgage approvals, when the BoE publishes data on Thursday.
The consensus of analysts' forecasts polled by AFX News is for the CBI's main sales balance to improve to +5 from +2.
However, the BoE is expected to report a drop in consumer credit
in February to 1.7 bln stg from 2.3 bln in January, and the number of mortgage approvals to remain at recent lows around the 80,000 mark.
Meanwhile, the Nationwide's closely-monitored monthly house price survey on Thursday is set to show house prices remaining steady in March and the annual growth rate falling below 10 pct, in line with the BoE's King view that the housing market appears to be steadying following a period of retrenchment.
"From a monetary policy perspective, the continued fragility of the housing market is a reason for the MPC not to raise interest rates again unless it feels it is absolutely necessary," said David Page, an economist at Investec Securities.
The MPC has not raised interest rates since last August as evidence emerged of a slowdown in the growth of consumer spending, particularly in the housing market.
Between November 2003 and August 2004, it raised its key repo rate a quarter point on five occasions, taking the base rate up to 4.75 pct.
That view appears to have changed this year, as consumer spending remained resilient and the economy grew above its so-called long-term trend rate in the fourth quarter of 2004.
Elsewhere, Friday's release of the monthly manufacturing survey from the Chartered Institute of Supply Management is expected to show the sector posting modest, if unspectacular, growth. The main index is expect to rise slightly to 52.0 from 51.8.
"Still above the 50 benchmark and consistent with modest growth in manufacturing output," said John Butler, economist at HSBC.

Evening all,

I see the US don't celebrate Easter Monday!

Good morning traders!

The US had a positive day yesterday with news of the biggest tech buyout ever, falling oil prices, a stronger dollar and arguably oversold conditions lifting stocks from the opening bell.

Underpinning the positive sentiment at the open was news that a consortium of seven private-equity firms plan to acquire SunGard Data Systems for about $10.8bn.

The Dow closed up 42.78 points at 10,485.65 with the Nasdaq Composite 1.46 points better at 1,992.52 and the S&P500 2.86 points up at 1,174.28.

In Asia overnight both the Nikkei and Hang Seng have been trading heavily in arrears.

Off to find some UK news....

Happy trading!

G.

EGG UPGRADED TO 'EQUAL-WEIGHT' FROM 'UNDERWEIGHT' BY MORGAN STANLEY

PILKINGTON UPGRADED TO 'EQUAL-WEIGHT' FROM 'UNDERWEIGHT' BY MORGAN STANLEY

MARKETS (March 28)
FTSE 100 closed
FTSE 250 closed
DJIA 10,485.60 up 42.70
Nasdaq Comp 1,992.52 up 1.46
S&P 500 1,174.30 up 2.90

BREAKING NEWS
* Office of Fair Trading examining whether Europe's largest stock exchanges are effectively monopolies, in a development that could delay any takeover of the LONDON STOCK EXCHANGE for several months - FT
* The 11.3 bln usd sale of SunGard Data Systems, the US technology group, to a seven-member private equity consortium expected to become a model for future deals, as the largest buy-out groups join forces to clinch big takeovers - FT
* BALFOUR BEATTY's Hong Kong partner Gammon wins a 175 mln stg contract to build the Venetian Macao Tower, a hotel and casino for the glitzy Las Vegas group - FT
* VISUAL DEFENCE, a company that provides digital surveillance technology to airports and the military, planning to float on AIM next month with an estimated valuation of 72 mln stg - FT
* AON's 190 mln usd settles commissions inquiry; world's second-largest broker reaches agreement with Eliot Spitzer over allegations of conflictas of interest on fes - Telegraph

TUESDAY PRESS COMMENT
FT
THE LEX COLUMN comments on SunGard deal, mergers and acqusitions market, Livedoor/Fuji TV, European chemicals
Times
RUMOUR OF THE DAY: Shortlist of bidders for MTS, the electronic trading platform, understood to have expanded to include REUTERS, the media group - SMALLER STOCK TO WATCH: FONEBAK, which recycles mobile phones, makes its debut on AIM this week after raising 5 mln stg in an issue that is set to value the company at 24 mln stg
Independent
Small Talk: Stephen Foley comments on cash shells

Morning all.

UK and European brokers' recommendations issued today, as collated by AFX News from a range of market sources.


CAZENOVE
Upgrade In-line from neutral Rentokil Initial

JP MORGAN
Upgrade Neutral from underweight TeliaSonera -- Initiate Overweight Immobiliare Grande Distribuzione, target 1.90 eur

UBS
Upgrade Buy from neutral Centrica, ups target to 300 pence from 275 -- Reiterate Neutral WPP, ups target to 605 pence from 580 -- Neutral Brambles, ups target to 300 pence from 283 -- Neutral Topps Tiles, cuts target to 190 pence from 265 -- Buy Getronics, cuts target to 2.40 eur from 2.50 -- Neutral FirstGroup, cuts target to 350 pence from 360

MERRILL LYNCH
Upgrade Neutral from sell TeliaSonera -- Downgrade Neutral from buy Sodexho Alliance, target 25.54 eur, valuation call -- Downgrade Neutral from buy Gecina -- Reiterate Buy O2, adds to Europe 1 List -- Neutral Marylebone Warwick, ups NAV estimate to 115 pence from 99 -- Buy Capital & Regional, ups target to 840 pence from 790 -- Buy BNP Paribas, raises target to 62 eur from 59 -- Buy Akzo Nobel, raises target to 38 eur from 35 -- Sell Autogrill

DEUTSCHE BANK
Upgrade Buy from hold Red Electrica

MORGAN STANLEY
Upgrade Equal-weight from Underweight Pilkington, ups target by 14 pct to 108 pence -- Upgrade Equal-weight from Underweight Egg, ups target to 125 pence from 90 -- Resume Overweight Deutsche Boerse

CITIGROUP SMITH BARNEY
Upgrade Buy from hold Nestle

WESTLB
Downgrade Neutral from outperform AP Moeller Maersk -- Upgrade Outperform from underperform Depfa, ups target to 13.5 eur from 11.0 -- Downgrade Underperform from neutral Pfeiffer Vacuum, target 35.5 eur

LEHMAN
Reiterate Equal-weight Scor, ups target to 1.65 eur from 1.50

CSFB
Reiterate Underperform Generali, ups target to 25.6 eur from 24.5

London shares - midmorning features

FTSE 100 risers
Rentokil Initial 165-1/4 up 6-1/4
PurusCo bid for ISS excites; 'in-line' from 'underperform' - Cazenove
Scottish & Newcastle 480-1/2 up 10-3/4
Talk of 600 pence-a-share bid from SABMiller
Centrica 227 up 1-3/4
'Buy' from 'neutral' on valuation grounds - UBS
EMAP 839 up 6
Trading update tomorrow
Standard Chartered 950 up 2-1/2
Barclays bid speculation; Teather & Greenwood 'buy'
Tate & Lyle 545 up 4-1/2
Trading in line with expectations; Williams de Broe 'buy'
HBOS 821-1/2 up 6
Buys back 500,000 shares at 816.4 pence apiece

FTSE 100 fallers
BAE Systems 258 down 3-3/4
Profit-taking
BAA 586 down 5-1/2
'Hold' but could take some profits - Williams de Broe
WPP 607 down 3
UBS targets 605 pence
Next 1,610 down 22
CSFB cuts estimates
J Sainsbury 291-1/2 down 1-1/2
Goldman Sachs cuts estimates

FTSE 250 risers
Egg 116-1/2 up 2
'Equal-weight' from 'underweight with 125p target - Morgan Stanley
Burren Energy 517 up 5
Full-year results due next Monday
VT Group 313-3/4 up 1/2
In-line trading update; Numis/Williams de Broe/Arbuthnot/Panmure positive
Luminar 495 up 1-1/2
Arbuthnor reiterates 'buy' with 630 pence target
Ultra Electronics 743 up 5
To buy Horizon Aerospace's cockpit instrumentation business; Arbuthnot 'buy'

FTSE 250 fallers
London Stock Exchange 460 down 14
OFT probe could delay any takeover
WH Smith 346-1/2 down 9
High street spending worries
Whatman 244 down 3-1/2
Full-year results due Tuesday April 5
Somerfield 204-3/4 down 2-1/4
Awaiting bid developments
Pilkington 115-1/2 down 1
Morgan Stanley targets 108 pence

Other risers
Triple Plate Junction 45 up 4-1/2
Vietnamese licences award
Retail Stores 250 up 25
Sales showing strong growth; debt reduction moves; interims
XKO Group 83 up 7-1/2
Co to focus on software operations following disposal
Avesco 102-1/2 up 7
Mail on Sunday comment on fund manager's stake buying
Deal Media Group 2-1/2 up 3/4
Move to profit in year ended December
Hambledon Mining 8.62 up 0.37
5 mln stg placing completed
Intec Telecom Systems 68 up 3
New chairman

Other fallers
Longbridge 14 down 7-1/2
Accounting policy revision results in 2004 losses of 660,000 stg
Scott Tod 34 down 5-1/2
Disappointing interims
Jarvis 15-1/4 down 1-3/4
Dilution threat; secures additional short term financing
Ottakar's 258-1/2 down 4
LFL sales for 7 weeks to March 19 down 1.6 pct; FY results
First Calgary 845 down 90
Bidders raise concerns about steep price tag - Sunday Telegraph

Good to have you back Digger. :-)

Thanks for all the news...