The FTSE 100 Index gained 26 points, or 0.5%, to 5,679 points today, led by renewed bid hopes.
Corus gained 1.34% to 434p on rumours Russian steel producer Severstal, which just days ago had its bid for Arcelor rebuffed in favour of Mittal Steel, is considering a bid.
EMI rose 8.37% to 307.50p after Warner Music's £2.5bn bid was rejected.
The miners dominated the fallers, with Antofagasta down 1.25% ti 395p, Rio Tinto down 0.95% to 2,724p, BHP Billiton down 0.81% to 983p and Anglo American down 0.29% to 2,089p.
Friends Provident slipped back 0.73% to 170.25p after it said chief executive Keith Satchell will retire from in the first half of next year. Satchell will be replaced by group finance director Philip Moore.
United Utilities fell 3.30% to 630p as it traded ex-dividend.
In the US, the Dow Jones industrial average is little changed, up 2.32 points, or 0.02%, at 10,927.06 points, as investors avoid placing bets before the start of a Federal Reserve meeting which could result in a signal interest rates will keep rising.
Merrill Lynch has revised up its price forecast for US crude oil to $68.25 a barrel from $65.50 a barrel for the second half of 2006.
Exxon shares have jumped 97 cents to $60.62, while shares of rival Chevron have risen 1.1% to $60.77.
Apple Computer has fallen 2.5% to $56 after some analysts expressed concerns about its outlook.IFAonline
Paul Bruns and Elaine Parkes
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