The FTSE 100 index rose 21.40 points, or 0.3%, to 6,339 points today, helped by bid speculation and rising commodity issues.
Pearson led the risers, up 3.85% at £8.63, on private equity break-up rumours.
Barclays gained 2.57% to £7.58 as traders followed up a story that Citigroup could bid for ABN Amro by suggesting the US bank is really after Barclays and talk about a deal with ABN could be a smokescreen.
BP rose 2.74% to £5.43 and Shell advanced 2.01% to £16.75 following the $2 per barrel rise in crude prices in New York on Thursday.
A rise in copper prices also lifted Kazakhmys up 1.75% to £11.68.
On the downside, British Airways fell 1.33% to £5.19 amid concern about the Open Skies deal signed yesterday and rising oil prices.
J Sainsbury declined 0.64% to £5.46 on concerns the size of its pension fund shortfall could affect a private equity takeover.
In the US, the Dow Jones industrial average is up 25.56 points, or 0.21%, at 12,486.70 points, helped by an advance in General Motors’ shares.
Shares of GM have jumped 4.49% to $31.68, as investors speculate the automaker will be less likely to buy Chrysler, the US division of DaimlerChrysler.
Exxon Mobil has gained 1% to $75.07 after oil prices rose on news Iran had captured 15 British Royal Navy personnel.
Amgen has fallen 5.3% to $57.25, a day after the biotechnology company scrapped a key cancer drug trial.
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