London’s blue chip stocks ended the day higher as traders banked on a last minute deal between Greece and its creditors.
European Commission president Jean-Claude Juncker said new proposals submitted by Greece to its creditors 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.
As he was one of sternest critics of the Greek government, equity markets leapt on the news even though there has very little concrete detail so far.
Markets were higher across Europe with both the French Cac 40 and the German Dax gaining 3.8% respectively.
In the UK, the FTSE 100 climbed higher after the markets opened on Wall Street to finish 1.7% ahead at 6,825.
Leading the way higher was Severn Trent (LON:SVT) after a report over the weekend suggested it had caught the eye of Borealis Infrastructure.
Borealis was a key member of the LongRiver consortium that almost launched a takeover bid for Severn Trent two years ago. Shares leapt 5.8% to 2,176p.
In other M&A news, UK oven-maker AGA is reportedly drawing the attention of US firm Middleby Corp who is reportedly prepared as much as £2 a share for the company.
It’s a big premium compared to its current share price which was 1.39% higher to £1.46.
Elsewhere, Spire Healthcare (LON:SPI) surged 11% to 355p 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 36p to 1,074p.
One bid that did materialise was Ferrero’s takeover of chocolate retailer Thorntons (LON:THT) at 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 145p on the news
In broker news, P&O cruise owner Carnival (LON:CCL) 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 3.8% to 3,288p.
To small caps - and 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 95% to 4.05p.
Also higher was Lansdowne Oil & Gas (LON:LOGP). The company has a 20% stake in the Midleton Prospect which Petronas unit Kinsale Energy has contracted the Ocean Guardian drilling rig to drill a well on. Shares climbed 18.1% to 6.2p.