FTSE 100 Prospers During Quiet Trading Day

The FTSE 100 was buoyant on Monday morning lifted by merger and acquisition rumours surrounding International Power and Cadbury and firmer metal prices which sparked a recovery in the mining sector. Shortly after midday Britain's leading share index was up 32.82 points or 0.6% to 5,488.19.

Dominic Turner
shareprices.com - Monday, January 18, 2010

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The U.S. markets were, of course, closed for Martin Luther King Day but there was speculation that U.S. food giant Kraft would raise its hostile bid for Cadbury from 771p per share to at least 820p per share before the deadline at midnight on Tuesday. Cadbury Chief Executive, Todd Stitzer, told the Daily Telegraph that Cadbury could be worth 1,000p per share in three years time so shareholders may yet hold out for an even higher price. The speculation did Cadbury's share price no harm lifting the confectioner 1.4% to 807p.

International Power was also the subject of unsubstantiated rumours in the press that it had received a takeover bid from the French company GDF Suez, the second largest utility in the world. There was no statement from either party regarding the truth of the rumours but once again they were sufficient to lift International Power's share price by 5%.

Concerns over demand for metals, sparked by worse than expected data from China and the U.S. last week, eased slightly and miners were strong across the board. Anglo American, Antofagasta, Kazakhyms, Lonmin, Rio Tinto and Vedanta Resources were all in the blue by between 0.5% and 3.2%.

 

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