(Adds futures, company news)
LONDON, May 16 (Reuters) - Britain’s FTSE 100 index is seen inching higher on Friday, with the June futures contract up 0.2 percent by 0633 GMT ahead of the cash market open. For more on the factors affecting European stocks, please click on
* The blue-chip FTSE 100 index ended down 37.60 points, or 0.6 percent, at 6,840.89 on Thursday after it reached a 14-year high earlier in day, led down by airlines on profit-taking after a strong rally, with their pullback underscoring fears over the outlook for broader share prices.
* Lofty valuations are stopping investors from putting more money to work in equities. The FTSE 100 is trading on a 12-month forward price/earnings ratio of 13.7 times, against its 10-year average of 11.7 times, Thomson Reuters Datastream shows.
* WM MORRISON : The supermarket’s rise on Thursday was helped by mounting speculation that a U.S.-led private equity consortium was weighing a 6.4 billion pound ($10.8 billion), or 275 pence a share, cash offer, the Daily Mail’s market report said.
The firm is also the fifth most shorted stock on the UK benchmark, with 6.4 percent of its shares out on loan, data from Markit showed.
* INTERTEK GROUP : The testing firm said it expects to see an improvement in revenue growth and profitability in the second half of the year, after it posted a 3.6 percent rise in group revenue in the first quarter.
* BARCLAYS : Barclays will issue at least $1 billion of new bonds that can convert into shares if the bank hits trouble under an offer to debt investors to exchange old bonds for new securities.
* ROYAL BANK OF SCOTLAND : Hundreds more investors have jumped aboard an unprecedented group action against RBS, alleging they were misled during a record rescue cash call in 2008, and are claiming damages of roughly 4 billion pounds.
* CARPHONE WAREHOUSE : Europe’s biggest independent mobile phone retailer said it and the other shareholders of the Virgin Mobile business in France have agreed to sell the venture to Numericable Group for an enterprise value of 325 million euros ($445.8 million).
* BOVIS HOMES GROUP : The housebuilder said that private reservations jumped 78 percent for 2014 delivery.
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$1 = 0.5954 British Pounds $1 = 0.7291 Euros Reporting by Tricia Wright; Editing by Lionel Laurent