The FTSE 100 Index rose 14.90 points, or 0.3%, to 5,765 points today as BAA continued to gain ground.
BAA rose 3.08% to 905p after Goldman Sachs was given a deadline by which to make an offer for airports operator.
Hedge fund firm Man Group gained 0.95% to 2,443p after Deutsche Bank raised its share price target to 2,820p from 2,620p, keeping its "buy" recommendation.
Corus was up 2.01% to 406p after Morgan Stanley raised its rating on the European steel producers sector to "attractive" from "in line".
Oil service group Abbot also rose 2.24% to 308.25p. Its recent acquisition, Songa, has won a two-year drilling contract for a jack-up rig with Pemex. The contract provides for a day rate of $145,000 together with a fee of $2m to tow it to its new location in Mexican waters.
Meanwhile, drug giant GlaxoSmithKline slipped 0.87% to 1,483p after reports emerged it is poised to spend about £8bn to snap up Pfizer's over-the-counter medicines unit.
In the US, the Dow Jones industrial average is down 17.22 points, or 0.15%, at 11,243.06 points as signs of weak jobs growth in a government report offset investors' optimism for a pause in interest rate increases by the Federal Reserve.
Shares of interest-rate sensitive companies, including banks and insurers, have risen with JP Morgan Chase up nearly 1% to $43.97.
But Wal-Mart Stores, which is among the stocks that would be vulnerable to weaker consumer spending in an economic slowdown, has lost 1.2% to $47.79.IFAonline
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