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* FTSE 100 flat
* British American Tobacco rises after Reynolds offer
* Informa gains after upgrade
* Acacia Mining soars following results
By Kit Rees
LONDON, Oct 21 (Reuters) - UK shares steadied on Friday,boosted by British American Tobacco after it bid forU.S. rival Reynolds American, while profit warnings frommid-sized companies added a note of caution before earningsseason picks up next week.
The blue chip FTSE 100 index was flat at 7,028.53points by 0906 GMT, on course to post a 0.2 percent gain in aweek that saw some big fallers following disappointing updatesfrom Pearson and Burberry and a profit warningfrom Travis Perkins.
The FTSE 250 mid cap index, made up of moredomestically-focused firms, was also flat and on track to endthe week with a 0.2 percent fall, hit by profit warnings onThursday from engineering firms Keller and Senior, as well as a slump in cyber security company NNC.
On Friday, M&A activity boosted shares in standout performerBritish American Tobacco, which rose nearly 3 percent and hit atwo-week high after offering to buy Reynolds American Inc.
"It has been a bit of a mixed bag," Laith Khalaf, senioranalyst at Hargreaves Lansdown, said.
"That's what you get when you've had the currencyfluctuating, which has created a bit of a division in terms ofwho is doing well out of that, and you've also got a very...low-growth world, which some companies can prosper in andothers can't."
British American Tobacco's proposed $47 billion deal withReynolds American would create the U.S. market leader. Shares inpeer Imperial Brands rose 2 percent.
"The U.S. is one of the most attractive profit pools in theworld," Owen Bennett, equity analyst at Jefferies said in anote.
"Macros are supportive, pricing potential is significant ...and also a large margin opportunity still. Litigation risk isnow largely behind us also. The U.S. will now make up over 40percent of BAT profit versus just under 20 percent previously."
Publishing and events company Informa was also amongthe top gainers, up 2.2 percent following an upgrade fromBerenberg to "buy" from "hold".
Late on Thursday the firm said that it had received U.S.antitrust clearance for its 1.2 billion pound acquisition ofPenton.
Analysts at Berenberg also noted its 2014 acquisition ofHanley Wood Exhibitions. "We believe Informa's strategy ofportfolio improvement has delivered greater progress thaninvestors give it credit for," they said in a note.
Outside of the blue chips, well-received results buoyedshares in Acacia Mining, which soared 11.6 percentafter the precious metals miner said that it saw its full yeargold production ahead of forecasts.
"The strong operational and financial results representanother significant step forward for Acacia, particularlyconsidering some of the headwinds experienced during thequarter," Russ Mould, investment director at AJ Bell, said in anote. (Reporting by Kit Rees; editing by John Stonestreet)
