The FTSE 100 has made a strong start to the week ending 37.2 points, or 0.69%, higher to close the day at 5460.80, after a good performance from Scottish Power and Mothercare.
Scottish Power climbed 18p, or 3.2%, to 578p, after newspaper reports revealed E.ON AG, Germany's largest utility, has begun talks to buy Scottish Power for as much as £12bn.
Mothercare, a retailer of children's and baby products, surged 9.1% to 370p, after reports Apax Partners Worldwide LLP and others may be interested in buying the business for about 400p a share.
Chrysalis Group also climbed 1p, or 0.7%, to 136.5p, after the owner of London's Heart 106.2 FM and LBC radio stations agreed to sell its unprofitable books unit to Anova Books Company to allow it to focus on money-making radio and music divisions.
Meanwhile Xstrata, the world's biggest exporter of coal used in power plants, was one of the FTSE’s losers as it fell 11p, or 0.8%, to 1,2957, on news the company will make a £5.7bn takeover bid for Canadian mining company Falconbridge.
In the US, the Dow Jones Industrial Average has made a good start with gains of 18.17 points, or 0.17%, to 10548.93, despite a drop in energy shares.
Exxon Mobil, the world's largest publicly traded oil company, has lost $0.80 to $57.10, while Chevron, the No.2 US oil company, has fallen $0.69 to $57.32, after crude oil for December delivery retreated 2.4% to $59.10 a barrel.
Qualcomm, the world's No.2 maker of chips that run mobile phones, has also slipped $0.04 to $44.76 despite saying its stock-buyback is $1.5bn higher than an existing program and should boost earnings per share.
Elsewhere, Citigroup, the biggest US financial-services company, has risen $0.36 to $45.96, after Prince Alwaleed, which owns 4.3% of the lender, said the shares may rise more than 50% to $70 in the next year as Citigroup puts a series of scandals behind it and investors focus on earnings growth.
TiVo has also climbed $0.28 to $5.40, as the maker of digital video recorders agreed with Yahoo! to let customers browse TV listings on Yahoo and program their TiVo box to record shows.
Meanwhile Guidant is down $2.71 to $56.21, while Johnson & Johnson has also dropped $0.40 to $60.48. Guidant has sued J&J to complete the $25.4bn purchase of Guidant after J&J missed the deadline for closing the transaction.IFAonline
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation