Takeover talks help FTSE make gains

The FTSE 100 was buoyed yesterday by a 6.3% jump in Paddy Power Betfair shares after the bookmaker said it was in discussions to merge its US business with fantasy sports firm FanDuel (see story left).

The index ended the day up 0.15% or 11.22 points to 7,734.2 points.

Across Europe, the French Cac 40 and German Dax ended the day higher, up around 0.2% each.

In currency markets, the pound was mixed, falling 0.2% versus the US dollar to trade at 1.347 and rising 0.2% against the euro to 1.143.

Brent crude prices were flat at 78.04 US dollars per barrel, as investors digested data from the Energy Information Administration which showed US oil stockpiles dropping less than expected.

In UK stocks, Micro Focus International was one of the biggest risers on the FTSE 100, up 78.5p at 1,347.5p after confirming that revenues would be at the better end of previous estimates.

It also announced it had secured a 40 million US dollar contract earlier than expected, and comes in the wake of a 45% share price slump sparked by a profit warning in March.

The biggest risers on the FTSE 100 were Paddy Power Betfair up 490p at 8,250p, Micro Focus International up 78.5p at 1,347.5p and Anglo American up 89.8p at 1,892.4p.

The biggest fallers were Smurfit Kappa down 158p at 2,950p, Centrica down 7.5p at 140.9p, BT Group down 3.8p at 203p, and Royal Mail down 11.2p at 597.8p.