Royal Dutch Shell’s £47 billion swoop for BG Group ensured the FTSE 100 Index rallied back above the 7000 barrier as traders celebrated one of the biggest takeover deals of recent years.
BG shares jumped 37% or 339.85p to 1250p after the cash and shares offer from Shell valued the UK-based business at 1367p a share.
The FTSE 100 Index was 35.2 points higher at 6996.3 but had risen as high as 7012 amid the euphoria over the BG deal.
Traders are now looking for other deals in the oil sector, with BP in the spotlight as its shares climbed 4% or 17.1p to 471.9p. Royal Dutch Shell was 6% lower, off 126.75p to 2081.25p, on
fears relating to the risks associated with the BG deal, which is not due to complete until early next year.
Merger and acquisition interest also involved Sky after the Guardian reported that French media conglomerate Vivendi has been looking at a potential takeover in order to boost the reach of its pay TV channel Canal Plus.
Shares in Sky, which recently bought interests in Germany and Italy in order to create a pan-European operation, rose by 3% or 26.5p to 1049.5p.
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