Thursday's most followed: Xstrata, Glencore, Unilever, Royal Dutch Shell, Chariot Oil & Gas, ValiRx, Alkane Energy

Anglo-Swiss mining giant Xstrata (LON:XTA) and commodities trader Glencore (LON:GLEN) were the most followed blue chips this morning after confirming that they are currently in talks over a possible merger that would create a combined business worth US$82 billion.

Both groups ranked high on the list of the most searched for UK companies on Google News as investors looked for the details of the possible deal and monitored market reaction to the announcement.

The statement from Xstrata was issued in response to press speculation that the two companies are in advanced merger talks and could officially announce the deal early next week.

In today’s statement, Xstrata confirmed that it has received an approach from Glencore, which “may not lead to an offer being made by Glencore for Xstrata”, adding there can be no certainty that any offer will be made.

The Switzerland-based commodities trader holds a 34 percent stake in fellow FTSE 100 constituent Xstrata, which currently has a market cap of £36.3 billion.

Fellow blue chips, consumer goods giant Unilever (LON:ULVR) and oil and gas supermajor Royal Dutch Shell (LON:RDSB) also emerged among the most actively discussed companies  after reporting on their 2011 performance.

Both reports undershot forecasts, leading to a decline in the group’s share prices.

Unilever, which owns of the Lipton, Dove and Ben & Jerry brands, reported five percent growth in revenues to €46.5 billion during the year, while its net profits rise marginally from €4.24 billion in 2010 to €4.25 billion.

Unilever said trading conditions during the year were tough, owing to economic uncertainty in Europe and the US, which were offset by the strong performance of emerging markets, where underlying sales jumped 11.5 percent.

“We expect the external macro-economic environment to remain difficult in 2012 and input cost headwinds will persist, although to a lesser extent than in 2011,” said chief executive of Unilever Paul Polman.

Fellow FTSE 100 constituent Shell also reported lower than forecast growth in sales and profits. As oil prices surged in 2011, the group’s earnings jumped from US$18.6 billion in 2010 to US$28.6 billion last year.

Like Unilever, Shell offered a cautious outlook for 2012, saying the global economy and energy markets are likely to see continued high volatility.

Chariot Oil & Gas (LON:CHAR) also emerged among the most followed stocks in the oil and gas sector as today’s update from the company ranked among the most read RNS announcements.

The oil and gas small cap has secured the approval for its farm-out agreement with BP (LON:BP.) in block 2714A in Namibia, which was announced in August.

In exchange for a 25 percent stake, BP has agreed to cover Chariot's cost of drilling the first exploration well in this block as well as previously incurred costs.

Chariot will retain a 25 percent stake in the block, which ahs eleven identified prospects, one of which, Nimrod, will be tested in the second half of the year.

“We can now push forward with our drilling campaign on Kabeljou-1 using the additional knowledge and experience of our new partner, whilst reducing our capital and risk exposure,” said Chariot chief executive Paul Welch.

Other popular statements included an update from biotech junior ValiRx (LON:VAL), which pushed its share price up 35 percent in morning trade.

The life sciences firm has secured a European patent for its cancer screening test NAV3, enabling the group to begin producing and marketing the product. According to ValiRx, the test detects cancer cells when tumour development is about to start.

This is one of the five patents acquired by the company through a £137,000 deal with Finland's Pharmatest Services last month.

Other notable risers in London markets included alternative energy company Alkane (LON:ALK), which jumped 11 percent as investors cheered the acquisition of Greenpark Energy and a strong set of full year figures.

The company has bought coal mine methane (CMM) and power response power generation business Greenpark for £5.725 million. Greenpark’s total power generation reached 45 GWh in 2011.

Alkane’s management has estimated that Greenpark booked earnings of £1.9 million on revenues of £3.4 million in 2011.

“This acquisition is a significant step change in the scale of Alkane and adds significantly to our operating capacity and project pipeline,” said chief executive of Alkane Neil O'Brien.

“In addition, the acquisition will allow us to triple our capacity in power response for the National Grid.”

Alkane also said its revenues rose from £6.6 million in 2010 to £9.5 million last year as its electricity output surged from 120 GWh to 140 Gwh and sales prices increased from £44/MWh to £51/MWh.

Investors in Alkane welcomed the acquisition announcement with some encouraged by the fact, that the group will fund the acquisitions via debt as opposed to going for a dilutive fundraising. Some speculated that the acquisition could increase Alkane’s appeal as a takeover company for a larger player.