Smurfit Kappa Share News (SKG)

LONDON (Alliance News) - UK shares have opened flat to slightly higher Friday, as pharmaceuticals and banks continue  at the forefront.

Pfizer confirmed that it has made an increased offer for AstraZeneca PLC of GBP50 per share, in cash and Pfizer shares. Pfizer also released a letter it has sent to UK Prime Minister David Cameron, in which it promises to complete AstraZeneca's Cambridge R&D hub and to keep 20% of the combined company's total R&D workforce in the UK. Pfizer also said it would make the UK the combined firm's European headquarters and establish its corporate and tax residence in England.

Royal Bank of Scotland Group PLC said first-quarter pretax profit doubled, helped by lower operating expenses and a significant reduction in impairment losses.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: flat to higher at 6,810.76
FTSE 250: up 0.3% at 15,902.62
AIM ALL-SHARE: up 0.1% at 825.13
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Hang Seng: up 0.5% at 22,238.98
Nikkei 225: closed down 0.2% at 14,457.51
DJIA: closed down 0.1% at 16,558.87
S&P 500: closed down at 1,883.68
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GBP-USD: up at USD1.6891
EUR-USD: down at USD1.3854

GOLD: down at USD1,283.00 per ounce
OIL (Brent): up at USD107.96 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
(all times British Summer Time)

08:45 Italy Markit Manufacturing
08:50 France Markit Manufacturing PMI
08:55 Germany Markit Manufacturing PMI
09:00 EU Markit Manufacturing PMI
09:30 UK PMI Construction
10:00 EU Unemployment Rate
13:30 US Nonfarm Payrolls, Unemployment Rate, Average Earnings
14:45 US ISM New York index
15:00 US Factory Orders
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German Chancellor Angela Merkel arrived Thursday in Washington for a much-anticipated visit with US President Barack Obama during which Ukraine and the spy affair that rankled relations between the two countries are expected to be high on the agenda. Merkel went straight to the German Embassy for a meeting with US senators after arriving. Her face-to-face meetings with Obama was scheduled to take place Friday at the White House. The two leaders are expected to discuss additional sanctions against Russia over its intervention in Ukraine and the talks involving the US and the EU aimed at reaching a peaceful resolution.
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Citing "naked aggression" from pro-Russian militias, interference from outside forces and a rapidly deteriorating situation in the country's south and east, Ukraine moved Thursday to reinstate military conscription. The move came as multiple injuries were reported when pro-Russian forces swept aside security forces and stormed a government building, this time in the disputed eastern Ukrainian city of Donetsk, according to the Interfax news agency.
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The average of household spending in Japan surged 7.2% on year in March, the Ministry of Internal Affairs and Communications said on Friday - coming in at 345,443 yen. The headline figure shattered forecasts for a gain of 2.0% following the 2.5% contraction in February. Analysts believe that the large spike in spending was a precursor to the sales tax that went into effect in April.
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Five more bodies have been recovered from the wreck of a sunken Korean ferry, bringing the death toll up to 226, a news report said Friday. Seventy-six people remained unaccounted for as concerns mounted that the stronger spring tides might make further recovery impossible, the Yonhap News Agency reported.
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The crisis in the Central African Republic has worsened in the past months as inflammatory rhetoric has turned Christian and Muslim communities against each other, said John Ging, director of UN humanitarian operations, Thursday. Ging warned that the scale of the crisis, which was ignited by armed extremists groups last year, has gravely increased over the past three months and now affects 1 million people.
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BROKER RATING CHANGES
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SOCGEN RAISES SHIRE PRICE TARGET TO 3980 (3870) PENCE - 'BUY'
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Jefferies Raises Shire Price Target To 4,045p from 3,550p - Buy
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DEUTSCHE BANK RAISES SHIRE PRICE TARGET TO 3920 (3850) PENCE - 'BUY'
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CREDIT SUISSE RAISES RESOLUTION TO 'NEUTRAL' ('UNDERPERFORM') - TARGET 325 (340) PENCE
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BERENBERG RAISES ASTRAZENECA PRICE TARGET TO 3775 (3570) PENCE - 'HOLD'
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TRADERS: CITIGROUP CUTS GO-AHEAD GROUP TO 'NEUTRAL' ('BUY')
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TRADERS: MERRILL LYNCH RAISES DIXONS RETAIL TO 'BUY' ('NEUTRAL')
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BERENBERG RAISES TALK TALK TELECOM TO 'HOLD' ('SELL') - TARGET 220 PENCE
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COMPANIES - FTSE 100
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Pfizer confirmed that it has made an increased offer for AstraZeneca PLC of GBP50 per share, in cash and Pfizer shares, up from an original offer of GBP46.61 per share. Pfizer also released a letter it has sent to UK Prime Minister David Cameron, in which it promises to complete AstraZeneca's Cambridge R&D hub and to keep 20% of the combined company's total R&D workforce in the UK. Pfizer also said it would make the UK the combined firm's European headquarters and establish its corporate and tax residence in England. AstraZeneca confirmed receipt of the proposal and said its board will meet to discuss the bid, with a further announcement to be made "when appropriate." The UK firm also said urged shareholders to take no action at this time.
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Royal Bank of Scotland Group PLC said first-quarter pretax profit doubled, helped by lower operating expenses and a significant reduction in impairment losses. In a statement, RBS said first-quarter pretax profit increased to GBP1.64 billion from GBP826.0 million in the corresponding quarter a year earlier, even as total income decreased to GBP5.05 billion from GBP5.16 billion.
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InterContinental Hotels To Return USD750M To Shareholders In Special Dividend; Q1 Occupancy Up 2.4%, Av Daily Rate Up 1.9%
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Rexam: Overall Results In Line With Expectations, Financial Position Remains Unchanged From Year-End
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COMPANIES - FTSE 250
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Direct Line Insurance Group PLC reiterated its combined operating ratio target for 2014 but said first-quarter gross written premium for ongoing operations decreased as a result of competition in UK personal lines, partially offset by growth in commercial lines and in Germany. In a statement, the insurer, which was fully divested by Royal Bank of Scotland Group PLC earlier this year, reiterated that it is still targeting a combined operating ratio in the range of 95% to 97% for ongoing operations, assuming a "normal" level of claims from weather events. First-quarter gross written premium decreased to GBP949.3 million from GBP1.01 billion a year earlier, with currency movements partly to blame.
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Property investment and development company Capital & Counties Properties PLC said it has made a "positive" start to the year after launching its new residential development in Fulham, London. In an interim management statement for the period January 1 to date, the London-focused company said over 200 flats have now been reserved or exchanged as part of the first phase of its Lillie Square development.
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John Laing Infrastructure Fund NAV GBP801.7M At March-End
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Rentokil Q1 Pretax Profit Up 6.0% TO GBP19.3M; Revenue Down 5.7% To GBP412.3M; Q1 Results In Line With Expectations
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Laird Says Q1 Revenue Up 7% To USD199M Vs USD186M
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COMPANIES - ALL-SHARE AND AIM
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London Capital Group Places GBP15M Convertible Loan Notes With GLIO Holdings, Led By Charles-Henri Sabet; Q1 Pretax Loss GBP0.4M, Vs GBP0.7M Profit In 2013 From Continuing Operations; Q1 Revenue GBP4.7M, Vs GBP7.6M In 2013 From Continuing Operations; Trading Activity In March Muted After Increases In January, February
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Workspace Group PLC said it has acquired Vestry Street Studios in east London from an unnamed vendor in a deal worth GBP12.6 million. Vestry Street Studios, a Shoreditch-based warehouse of 23,000 square feet, is currently 100% let.
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Safestay Starts Trading On AIM Friday Following GBP4.8M IPO, GBP2.8M Convertible Issue
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Stadium Group Says Trading In First 4 Mos Of Year In Line With Expectations, Significantly Ahead On Year
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Smurfit Kappa Q1 Pretax Profit EUR104.0M Vs EUR57.0M; Revenue EUR1.93B Vs EUR1.89B
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Kazakhstan-focused Steppe Cement Ltd reported an increase in profit and revenue in the full year 2013, as it said the cement market in the central Asian country grew by 13%. The cement producer posted pretax profit of USD13.0 million for 2013, up from GBP12.0 million a year earlier, as revenue rose to USD123.0 million from USD120.2 million in 2012.
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Friday's Scheduled AGMs/EGMs

Rexam
Laird
Capital & Counties Properties
RPS Group
InterContinental Hotels Group
Aer Lingus
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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