US STOCKS-Futures point higher on M&A activity; PPI looms

NEW YORK, March 15 (Reuters) U.S. stock index futures pointed to a higher market open on Thursday as a wave of corporate deals and restructuring plans stirred optimism about equity valuations.

Electronic energy marketplace IntercontinentalExchange made an unsolicited bid for CBOT Holdings Inc. on Thursday. The Chicago Mercantile Exchange had already agreed in October to buy the Chicago Board of Trade.

The bid sent shares of IntercontinentalExchange up 2.3 percent to 4.99 before the bell. CBOT shares jumped 13.2 percent to 8.05 in electronic composite trading.

British confectioner Cadbury Schweppes Plc said it planned to split its candy and U.S. beverages businesses, sending its shares higher. Britain's Imperial Tobacco Plc made a billion bid for Franco-Spanish tobacco company Altadis.

U.S.-listed shares of Cadbury were up 3.8 percent to .78 in electronic composite trading.

Shares in Europe were up more than 1 percent, mirroring the late-session recovery in U.S. stocks on Wednesday following an unusually volatile session.

Wall Street stocks may take direction from U.S. inflation data set for 8:30 a.m. (1230 GMT). Economists forecast producer prices rose 0.5 percent last month, or 0.2 percent minus food and energy costs.

Initial jobless claims will also be released at 8:30 a.m.

''Futures look a little better because there's a little more stability overseas; Europe and Asia are up; they felt our rebound yesterday,'' said Peter Dunay, investment strategist, Leeb Capital Management New York.

''But the market will take its cue from the inflation data.

If that inflation number comes in above estimates, it will be difficult for the Fed to cut rates,'' he added.

Earnings reports due before the bell include results from Bear Stearns, a Wall Street powerhouse in packaging home loans into mortgage-backed bonds. Investors will scrutinize the investment bank's statement for any signs that it is being affected by the subprime mortgage crisis caused by rising delinquencies among high-risk home loan borrowers.

S&P 500 futures were up 2.6 points, well 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 rose 27 points, and Nasdaq 100 futures rose 6 points.

REUTERS KR HS1754