European Stock-Index Futures Rise; Cairn Energy, Dana, Aviva May Be Active

European stock-index futures gained after the Stoxx Europe 600 Index retreated by the most in more than a month last week. Most Asian shares declined while U.S. futures rose.

Cairn Energy Plc might be active after Vedanta Resources Plc agreed to buy a stake of as much as 60 percent in the company’s Indian oil unit. Dana Petroleum Plc may advance after a report that Canadian and Indian companies are studying the firm. Aviva Plc might gain after rejecting a bid from RSA Insurance Group Plc for its general insurance businesses in the U.K., Ireland and Canada.

Futures on the Euro Stoxx 50 Index rose 0.3 percent to 2,713 at 7:28 a.m. in London. The U.K.’s FTSE 100 Index may open unchanged, according to IG Markets. The MSCI Asia Pacific Index slipped 0.1 percent while Standard & Poor’s 500 Index futures gained 0.2 percent.

The Stoxx 600 fell 1.2 percent last week after the Federal Reserve said the pace of recovery in the world’s largest economy will probably be “more modest” than forecast. The gauge is still up 10 percent from this year’s low on May 25 as corporate earnings eased concern that the economy may tip back into recession.

In Asia today, most shares fell after Japan expanded at the slowest pace in three quarters and Hong Kong announced measures to cool home prices. The economy grew at less than a fifth of the pace economists estimated last quarter, pushing it into third place behind the U.S. and China and adding to evidence the global recovery is faltering.

Cairn, Vedanta

Cairn Energy might be active after Vedanta said it agreed to buy 51 percent to 60 percent of the company’s Indian oil unit for an aggregate consideration of about $8.5 billion to $9.6 billion in cash.

Dana Petroleum, which last week rejected a 1.7 billion- pound ($2.7 billion) takeover offer from Korea National Oil Corp., may gain after the Sunday Telegraph reported the company is being studied as a possible takeover target by a Canadian oil company and an Indian energy group. The newspaper cited a banking source it did not identify.

Aviva might climb after rejecting the RSA bid, saying that the best value for shareholders will come from retaining the general insurance businesses.

‘Upside Potential’

“Given the compelling strategic and financial benefits to Aviva shareholders of retaining the GI Business, its upside potential and the terms offered by RSA, the board was unanimous in rejecting this proposal,” Aviva Chairman Colin Sharman wrote in a statement.

The Sunday Times reported that Aviva shareholders, including Standard Life Investments, will demand a full strategic review and possible breakup of the company, without saying where it got the information. Standard Life declined to comment when contacted by telephone yesterday.

Sky News reported on its website that RSA has lined up BNP Paribas SA, HSBC Holdings Plc and Deutsche Bank AG to underwrite a 5 billion-pound rights offer.

Hennes & Mauritz AB may rise after Europe’s second-largest clothing retailer reported a 21 percent gain in total sales in July, compared with the same month a year earlier. Sales in stores open at least a year increased 10 percent.

Hochtief AG might move after Germany’s largest construction company forecast its order book will grow this year, buoyed by expansion overseas and gains in the Australian and U.S. dollars.

The inflow of new work will exceed 2009 levels, the company said in a statement. Exchange rate moves inflated first-half orders by 6 billion euros ($7.7 billion). Hochtief reiterated sales will be similar to last year, with pretax profit increasingly “slightly.”