* HP shares slide after 3PAR offer
* Utilities sector leads gains as buyers seek safety
* 3M CEO says may double acquisition spending in 2010
* Dow, S&P 500 flat, Nasdaq down 0.4 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to midafternoon, changes byline)
By Leah Schnurr
NEW YORK, Aug 23 (Reuters) - U.S. stocks were little changed on Monday as investors took refuge in defensive shares after the latest corporate M&A failed to soothe concerns the recovery is stalling.
Technology shares led the downside as a possible bidding
war over data storage company 3PAR
The bid comes on the heels of other deals last week,
including acquisition offers from Intel Corp
"Overriding the M&A buzz -- which didn't have a lot of longevity -- is the fact that economic data still remains very poor and there's concern that the much-discussed soft patch has the potential to become something greater," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
Analysts said the recent spate of M&A also points to companies continuing to make profits through cost cutting rather than through topline revenue growth and highlights economic weakness.
"It's positive we've got the merger talk, but it doesn't overlap a vibrant economy," said Hellwig.
The Dow Jones industrial average <.DJI> added 8.36 points, or 0.08 percent, to 10,221.98. The Standard & Poor's 500 Index <.SPX> edged up 0.48 point, or 0.04 percent, at 1,072.17. The Nasdaq Composite Index <.IXIC> slipped 9.47 points, or 0.43 percent, to 2,170.29.
Gains by utilities, healthcare and other defensive sectors stemmed losses to keep the broad market flat. The S&P 500 utilities sector <.GSPU> gained 0.8 percent, while the healthcare group <.GSPA> added 0.6 percent.
The Nasdaq fared worse than the other two indexes as technology shares slipped. Lingering concerns about the stalling economic recovery weighed on technology shares.
The Dow and S&P 500 have notched two straight weeks of losses on gloominess over softer-than-expected data in recent days.
HP, the computer maker, bid $24 a share in cash for 3PAR, topping an earlier bid from Dell. Shares of 3PAR surged 42.6 percent to $25.72, while HP dropped 1.7 percent to $39.17. Dell shares fell 1.1 percent to $11.94. For details see [ID:nN23188685].
3M Co's