A cocktail of mergers & acquisitions (M&A) news and optimism over an agreement between Greece and its European pay-masters has intoxicated investors.
The FTSE 100 was up 74 points at 6,784, as European Commission (EC) president Jean-Claude Juncker (pictured) said new proposals submitted to the heads of the International Monetary Fund (IMF), European Central Bank (ECB) and the EC last night were were a “basis for progress”.
The proposals included tax rises and spending cuts, actions that Greece’s prime minister Alexis Tsipras had previously refused to countenance.
The country has until the end of the month to pay €1.6bn to the IMF or face default.
On the M&A front, Spire Healthcare (LON:SPI) surged 9% to 349p as Remgro, the major shareholder in South Africa-based private hospital group Mediclinic, took a 29.9% stake in Spire, with the intention of selling it on to Mediclinic later.
The stake was acquired from private equity group Cinven for £432mln, equivalent to 360p a share.
Pay-TV pioneer Sky (LON:SKY) is wanted following reports at the weekend that the Murdochs have rejected two approaches for their 39% stake - one from Vivendi and the other from Vodafone (LON:VOD).
Canal+ owner Vivendi was interested in acquiring Sky, but the Murdochs reportedly want £18 per share, a more than 70% premium to Friday’s closing price. The news led to speculation that the Murdochs have not fully given up their ambitions to take over the satellite broadcaster. Shares added 35p to 1,073p.
One bid that did materialise twas Ferrero’s agreed bid for chocolate retailer Thorntons (LON:THT) of 145p per share, a 35% premium to last week. The bid was launched after Ferrero had acquired a 29.9% stake in Thorntons; the latter's shares jumped 43p to 144p on the news.
In broker news, P&O cruise owner Carnival (LON:CCL) led the risers on the FTSE 100 following an upgrade by Deutsche Bank.
Analyst Richard Carter said he expected Carnival’s second quarter earnings to be above the upper end of its guidance.
The broker upgraded its rating on the stock to a ‘buy’ and lifted its target price to 3,525p up from 3400p. Shares climbed 4.2% to 3,300p.
Elsewhere, Savannah Resources (LON:SAV) was a stand-out among the small caps as it took the seemingly sensible decision to develop its mineral sands operation jointly with Rio Tinto.
Savannah’s Jangamo prospect in Mozambique is next door to Rio Tinto’s sites and Savannah will be the operator of a project containing all three licences. Shares jumped 79% to 3.73p.
In other small cap news, self-styled full service innovation provider Imaginatik (LON:IMTK) was 37% higher to 7.88p on reports that Rob Quindell, through his Quob Park Estates investment vehicle, had been buying shares in the company.
Imaginatik said today, however, that, while it was aware of reports that Quob Park Estates has been buying shares in the company, it has had no contact with the company.
Meanwhile, beleaguered gas explorer Afren (LON:AFR) was another 10% lower today to 1.5p after the company released a prospectus after the close of trading on Friday relating to its proposed restructuring and refinancing.