Stock futures higher on AIG deal

NEW YORK (Reuters) - Stock index futures rose on Monday after AIG said it would sell its life insurance unit in Asia and as investors awaited U.S. data on manufacturing and consumer spending.

American International Group Inc shares jumped 12.2 percent to $27.78 in premarket trade after Britain's Prudential plc agreed to acquire AIG's insurance arm AIA Group for $35.5 billion.

Investors will watch the U.S. Commerce Department's release of January personal income and consumption data at 8:30 a.m, while at 10 a.m., the Institute for Supply Management releases its February manufacturing index and the Commerce Department releases January construction spending figures.

"The news that Prudential from the United Kingdom is buying AIG's Asian life insurance business, all eyes are focusing on that," said Peter Cardillo, chief market economist at Avalon Partners in New York.

"We will also have a slew of economic data today (that) could boost stocks even higher if we get a good reading out of the ISM and above all, consumer spending."

Personal income is expected to rise by 0.4 percent, with personal spending flat, according to Reuters estimates.

S&P 500 futures rose 1.6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 15 points, and Nasdaq 100 futures added 5.75 points.

Also helping to boost futures were signs that Athens might be nearing a deal with European Union governments to take more budget steps in exchange for some form of emergency aid for Greece.

Millipore Corp surged 11.4 percent to $105.15 in premarket after Germany's Merck KGaA on Sunday said it agreed to buy the U.S. biotech tool maker for about $6 billion in cash.

Intrepid Potash Inc shares were unchanged at $27.52 in premarket after the fertilizer maker reported fourth-quarter earnings slumped 70 percent on pricing that nearly halved from the prior year, but said it expects improved sales volume in 2010.

Other companies expected to post results as earnings season draws to a close include CMS Energy Corp , Edison International and Rowan Cos Inc .

European shares turned negative by midday, led by declines in Prudential in the wake of its deal for part of AIG and weaker HSBC shares after its results.

Asian shares rose, boosted by mining stocks after a massive earthquake in Chile, the world's top copper producer and signs the debt crisis in Greece could be easing.

U.S. stocks rose on Friday, capping their best monthly advance since November as data showed the economy grew a tad better than expected in the fourth quarter.

(Editing by Padraic Cassidy)

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