US STOCKS-Wall Street climbs on Citi earnings, M&A boost
* Shire to accept Abbvie takeover offer
* Citigroup up after earnings, settlement
* Indexes up: Dow 0.75 pct, S&P 0.55 pct, Nasdaq 0.68 pct (Updates to midday)
By Chuck Mikolajczak
NEW YORK, July 14 (Reuters) - U.S. stocks rose on Monday, sparked by the latest flurry of merger activity and earnings from Citigroup, putting the S&P 500 on pace to climb for a second straight session.
London-listed drugmaker Shire Plc said it was ready to recommend to agree to an increased 31 billion pounds ($53 billion) takeover offer from Abbvie Inc, ending a long-running courtship largely motivated by tax rates. U.S.-listed shares of Shire rose 1.4 percent to $252.48 while Abbvie shed 1.2 percent to $54.30.
Generic drugmaker Mylan Inc said it would buy Abbott Laboratories' specialty and branded generics business outside the United States in an all-stock transaction valued at about $5.3 billion. Mylan shares advanced 2.7 percent to $51.55 before the opening bell. Abbott shares rose 1 percent to $41.72.
Citigroup Inc shares rose 3.4 percent to $48.59 as one of the top boosts to the S&P 500 after it posted second-quarter earnings and agreed to pay $7 billion to settle a U.S. government investigation into mortgage-backed securities. The S&P financial index gained 0.8 percent.
Goldman Sachs analyst David Kostin raised his 2014 target for the S&P 500 to 2,050 from 1,900, citing expectations that yields on the 10-year Treasury note will be around 3 percent and will continue to push investors into stocks as they search for higher returns. Continuación...