Oct 1 (Reuters) - The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy.

Headlines

GOOGLE AND MICROSOFT SETTLE PATENT CASE

(http://on.ft.com/1O8RGcj)

BIG US HEDGE FUNDS HIT BY VALEANT FALL

(http://on.ft.com/1O8S1vt)

FED CLEARS $3.7 BLN M&T-HUDSON CITY MERGER

(http://on.ft.com/1hbXkvE)

UK MANUFACTURERS FACE EXTENDED STAGNATION

(http://bit.ly/1O8TcLu)

Overview

On Wednesday, Google and Microsoft settled about 20 patent lawsuits concerning their mobile platforms. The patent wars started after Google acquired Motorola in 2012 to amass a patent portfolio and protect Android from legal attacks.

Three of the biggest U.S. hedge funds - Bill Ackman's Pershing Square (IPO-PERS.L), Jeff Ubben's ValueAct, and John Paulson's Paulson & Co - have suffered heavy losses thanks to a sell-off in the shares of Valeant Pharmaceuticals.

U.S. chief banking regulator cleared a $3.7 bln merger between M&T Bank of New York and Hudson City Bancorp of New Jersey, paving the way for a consolidation in the scattered banking landscape.

British manufacturing has fallen to a six-year low, pointing to signs of an extended period of stagnation and weak demand from overseas.

(Compiled by Ankush Sharma in Bengaluru; Editing by Jonathan Oatis)