PIC.L Share News (PIC)

** British set-top box maker Pace down 5 pct afterto-be acquirer Arris warned on Q2 revenue and EPS

** Network gear maker Arris said late Friday it was impactedby various pending industry consolidations and a strong dollar

** Says will continue to feel the pinch in H2, and the deal,which is still expected to close by Q4 2015, will help counterindustry conditions

** Arris said in April that it would buy Pace in a $2.1billion cash-and-stock deal to expand its operations outsideNorth America

** Pace shareholders will receive 1.325 pounds ($2) in cashand 0.1455 new Arris shares for each share held, or 4.265 poundper share, the companies said then

** "Using the after-hours Arris price ($29.30), the Pacedeal is now valued at 407 pence per share," Numis analysts wrotein a note

** Numis cuts TP on the stock to 369 pence from 443 pence,reflecting a 30 pct chance of the deal failing.

** Pace, which has risen 12.4 pct since the deal wasannounced, is the worst performer on the FTSE All ShareTechnology Hardware & Equipment Index and the FTSEAll Share Technology Index. (Reuters Messaging:noor.hussain.thomsonreuters.com@reuters.net)