(Adds futures, company news)
LONDON, May 26 (Reuters) - Britain's FTSE 100 index is set to edge higher at the open on Tuesday, with financial bookmakers seeing the index opening up 4 to 8 points, or 0.1 percent higher, and futures up 0.2 percent ahead of the cash market open. For more on the factors affecting European stocks, please click on
* Britain's top share index hit closed up 0.3 percent at 7,031.72 points at its highest level in 10 days on Friday, driven by a jump in network operator Vodafone's shares, which hit a 14-year high on the back of potential merger activity.
* VODAFONE - Investors are encouraging Vodafone to spin-off its emerging markets operations and seek a 120 billion pound ($185.38 billion) merger with Liberty Global, according to the Sunday Telegraph.
* BHP BILLITON - BHP Billiton confirmed its demerger of South32 had been completed.
* ROYAL DUTCH SHELL - The world's fossil fuel reserves cannot be burned unless some way is found to capture their carbon emissions, Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden told the Guardian in an interview on Friday.
* CINEWORLD - Cineworld said it remains confident of delivering a performance for year as a whole in line with current market expectations after it reported a rise in revenues of 26.8 percent for the 19 weeks up to May 14.
* EU REFERENDUM - Britain must "get on with it" and hold its planned referendum on whether to leave the European Union no later than next year to avoid a long period of damaging uncertainty, the country's leading manufacturing association said.
The Bank of England plans to assess the implications of a possible British exit from the European Union, it said in a statement, confirming an email it inadvertently sent to a newspaper about the supposedly confidential research project.
* MOTOR INSURERS - British motor insurers last year boosted their financial results by drawing on a large proportion of the reserves they had built up against future claims, consultancy Deloitte said on Tuesday.
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