Dealmaking hopes snap five-day losing streak for the FTSE - London Report

HOPES for corporate deal-making and robust corporate results offset market turmoil in China and worries about emerging-market growth yesterday.

The FTSE 100 index closed up 0.8 percent at 6,555.28 points, while the pan-European FTSEurofirst 300 index rose one per cent.

RSA Insurance soared 18 per cent on news Zurich Insurance was considering a takeover bid.

Hikma Pharmaceuticals was also up, more than seven per cent, after announcing a deal to buy Boehringer Ingelheim’s US generic drugs business for about $2.65bn (£1.7bn) in cash and stock.

Among other top gainers, GKN added more than seven per cent. The engineering company said it had agreed to acquire Netherlands-based Fokker Technologies for €706m (£500m), including debt, to strengthen its position as a supplier to aeroplane manufacturers.

On the downside, Royal Mail fell more than three per cent after regulator Ofcom said the group had breached competition law by proposing wholesale prices designed to be more expensive for any company looking to run a rival mail delivery service.

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