FTSE 100 rebounds as oil price rises and Shire jumps on bid report - London Report

Gains in big oil companies and drugmaker Shire yesterday lifted Britain’s top equity index, which extended a rebound after falling to 15-month lows last week.

The FTSE 100 index closed up by 1.7 per cent, or 105.26 points, at 6,372.33 points.

Shire rose 2.61 per cent to 3,848p, after Reuters reported that Botox-maker Allergan shareholder Paulson & Co was urging the firm to merge with the British drugmaker as an alternative to a deal with hostile bidder Valeant Pharma­ceuticals.

With Brent crude edging higher after recent falls, helped by the Chinese GDP data, oil companies moved higher. Tullow Oil added 3.54 per cent to 526.50p, while Royal Dutch Shell A shares rose 3.07 per cent to 2163.50p. BP was up 2.79 per cent at 433.65p. Travel companies recovered some ground after fears over the deadly Ebola virus subsided. British Airways owner International Airlines Group rose 2.38 per cent to 370p, cruise company Carnival climbed 4.5 per cent to 2,347p, while Thomas Cook added 6.99 per cent to 117.80p.

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