LONDON: U.K. stocks advanced for the first time in six days as mergers-and-acquisitions activity increased.
RSA Insurance Group Plc surged 13 percent after Zurich Insurance Group said it’s evaluating a potential offer for the company. Industry investment company Melrose Industries Plc jumped 10 percent after agreeing to sell gas, water and electricity metering business Elster to Honeywell International Inc. Hikma Pharmaceuticals Plc climbed 7 percent after agreeing to purchase Boehringer Ingelheim GmbH’s Roxane business. GKN Plc added 6.6 percent after agreeing to buy Dutch aerospace supplier Fokker Technologies Group BV.
The FTSE 100 Index rose 0.8 percent to 6,553.67 at 9:58 a.m. in London, extending gains after a report showed U.K. economic growth accelerated in the second quarter. The 0.7 percent increase in gross domestic product marked a 10th straight expansion. The broader FTSE All-Share Index added 0.7 percent, while Ireland’s ISEQ Index rose 0.5 percent.
ITV Plc added 2.5 percent after posting an increase in revenue for the first half of the year. Royal Mail Plc fell 3.2 percent after receiving a statement of objections setting out Ofcom’s preliminary findings on a proposal into pricing changes.
