Monday's most followed: Xstrata, Glencore, Gulf Keystone Petroleum, Angel Biotechnology, EMED Mining, Antrim Energy, Avanti

Xstrata (LON:XTA) and Glencore (LON:GLEN) again were under the spotlight this morning after yesterday’s report in the Financial Times said the companies had agreed the terms of a merger, which would see Glencore pay a premium for the Anglo-Swiss miner.

The two groups topped the list of the most searched for UK companies this morning as investors monitored market reaction to the report and looked for the latest updates on the ongoing negotiations.

Last week, Xstrata and Glencore confirmed they were in talks over a “merger of equals” that the article in FT said will create an entity worth US$88 billion.

A few days ago, Liberum Capital said the companies would likely dispose of Xstrata’s 25 percent stake in midcap platinum producer Lonmin (LON:LMI) as Glencore has “no strategic interest” in the metal.

It has also been speculated that the combined group could consider making a bid for another mining major Anglo American (LON:AAL).

Oil group with assets in the Kurdistan region of northern Iraq Gulf Keystone Petroleum (LON:GKP) also showed up among popular Google searches amid renewed takeover rumours.

Shares in the group tacked on a further 7.5 percent to reach 325.5 pence this morning as investors on message boards speculated that the group could soon be taken over as sector majors realise the potential of its Kurdistan assets, which they said is not reflected in its market value.

Back in mid-December shares in Gulf Keystone jumped on rumours that the world’s largest oil and gas group by market capitalisation ExxonMobil (NYSE:XOM) was mulling a bid that would value the AIM quoted explorer at £7 billion versus current market cap of just over £2.5 billion.

On bulletin boards, some investors following Gulf Keystone said the potential bid for the company could spur a bidding war with other majors including National Oil Companies (NOCs).

In the meantime, Small caps Angel Biotechnology (LON:ABH) and EMED Mining (LON:EMED) showed up among the top risers in London markets with their updates making the list of the most read RNS announcements of the day.

Angel jumped 13 percent to 0.26 pence after announcing a series of contract wins, while EMED shareholders welcomed the news that the group’s plans to restart the Rio Tinto copper mine were endorsed by a new Chinese partner.

Starting with Angel, the supplier of materials for drug development and pre-clinical studies has signed three new manufacturing contracts with Russian pharmaceutical company Materia Medica Holding worth over £4.5 million in total.

These manufacturing projects are expected to take 22 months to complete.

According to Angel, the new contracts provide a “robust basis” for the joint venture between Angel and MMH that was agreed on back in October.

The purpose of the joint venture, which will be 49 percent owned by Angel, is to commission new product programmes and manage their production in a unit operated by the company on behalf of MMH.

“These agreements will put the proposed JVC on a sure footing from the outset, but is also an excellent example of the value Angel can provide via significant alliances such as this,” said executive chairman of Angel Biotech Paul Harper.

Shares in EMED also were in demand in morning trade with the mining firm seeing its value rise 18.5 percent to 12.75 pence as it announced that Yanggu Xiangguang Copper Co (XGC) will provide it with US$30 million and take a 10 percent in the company.

Under the terms of the agreement, the Chinese firm will have the rights for 25 per cent of the mine’s currently reported copper reserves, at market prices.

XGC will buy US$15 million worth of EMED shares at a price of nine pence per share and provide or arrange a US$15 million debt facility.

“This complements our overall product strategy wherein most of our production is expected to be delivered for copper production use in Spain and other European smelters, with whom we have also established appropriate dialogue,” said managing director of EMED Harry Anagnostaras-Adams.

Other notable movers of the day included Antrim Energy (LON:AEY), which dropped 15 percent to 77 pence as it announced that the East Fyne appraisal well in the UK Central North Sea block 21/28a is being plugged and abandoned.

Antrim and partner Premier Oil (LON:PMO) said the thickness of the oil bearing sand intersected by the well was at the lower end of pre-drill estimates.

The results of the East Fyne Appraisal well will be incorporated into the Greater Fyne Area plans with the partners set to decide whether a commercial development is viable in the second quarter of 2012.

Premier Oil operates the project with a 39.9 percent interest, Antrim holds 35.1 percent and First Oil Expro has a 25 percent stake in the Fyne area.

Other popular statements of the day included a funding update from satellite operator Avanti Communications (LON:AVN) which has raised £73.8 million to fully fund the design, construction and launch of the HYLAS 3 satellite.

Avanti has issued 26.8 million shares to new and existing institutional investors at a price of 275.5 pence per share, a slight discount to Friday’s closing price of 285.5 pence.

HYLAS 3, which will be flown on a new European Space Agency (ESA) satellite, will provide Ka band services, as with HYLAS 1 and 2. Under the terms of Avanti’s agreement with the ESA, the company will retain ownership and operational control of the HYLAS 3 hosted payload.

Avanti was selected by ESA after a competitive tendering process conducted last year. The final contract is expected to be signed in March 2012.