UPDATE 1-Resolution says market undervalues Friends merger

(Reuters) - Rival insurer Pearl Group has built up an interest of almost
16 percent in Resolution and has called for talks with its
management, saying the 8.6 billion pound
all-share, nil-premium merger deal with Friends does not
maximise value for shareholders.




"The board...believes the current share price fundamentally
undervalues the prospects for Resolution shareholders as part of
Friends Financial," Resolution said in a statement.


Read more at Reuters.com Mergers News

U.K. FTSE 100 Index Increases, Led by Friends Provident on Merger Talks

(Bloomberg) -- U.K. stocks rallied, led by Friends
Provident Plc after Resolution Plc said it is in ``advanced''
merger talks with the insurer. Prudential Plc and Legal & General
Group Plc rose after UBS AG recommended investors buy the shares.

Antofagasta Plc and Anglo American Plc paced gains in mining
companies. Barclays Plc rose after the bank increased its offer
for ABN Amro Holding NV.


Read more at Bloomberg Stocks News

European Stocks Advance; Depfa, Friends Provident, Barclays Climb

(Bloomberg) -- European stocks rose after Hypo Real
Estate Holding AG agreed to buy Depfa Bank Plc for 5.7 billion
euros ($7.9 billion) and merger talks between two U.K. insurers
revived speculation that takeovers in the region will continue.

Depfa soared 13 percent. Friends Provident Plc jumped the most
in more than two months and Resolution Plc headed for its biggest
gain since March after the companies said they are in talks for a
merger that would create the U.K.'s fifth-biggest insurer. Barclays
Plc climbed after it increased its bid for ABN Amro Holding NV.


Read more at Bloomberg Stocks News

U.K. Stocks Rebound, Paced by Prudential, Resolution; Barclays Advances

(Bloomberg) -- U.K. stocks climbed, rebounding from
last week's decline, led by Friends Provident Plc after Resolution
Plc said its in ``advanced'' talks to merge with the insurer.

Prudential Plc and Legal & General Group Plc paced the gains
after UBS AG recommended investors buy the shares. Barclays Plc
rose after the bank increased its offer for ABN Amro Holding NV.


Read more at Bloomberg Stocks News

TEXT-S&P on US Dept of Energy notice of proposed rulemaking

(Reuters) - Specifically, Title XVII authorizes the DoE to guarantee loans for projects
that "avoid, reduce, or sequester air pollutants or anthropogenic emissions of
greenhouse gases; and employ new or significantly improved technologies as
compared with commercial technologies in service in the U.S. at the time the
guarantee is issued." Title XVII also identifies 10 categories of technologies
that, if used in commercial projects, are potentially eligible for a loan
guarantee.




On Feb. 15, 2007, President Bush signed into law the Revised Continuing
Appropriations Resolution 2007, which authorizes DoE to issue guarantees under
the Title XVII program for loans in the "total principal amount, any part of
which is to be guaranteed, of $4 billion." In August 2006, the DoE also invited
"pre-applications" from project sponsors interested in obtaining a loan
guarantee from the DoE.


Read more at Reuters.com Bonds News