Takeover activity buoyed London shares on Wednesday as the possibility of a US rate hike loomed.
Royal Bank of Scotland (LON:RBS) confirmed market speculation that it had received approaches for its Williams & Glyn banking business.
The arm, which has about 300 branches in the UK, is said to be worth about £1.5bn.
RBS had planned to float the branches, which trade as RBS or NatWest, as Williams & Glyn next year under a plan agreed with the European Commission in return for the bank’s taxpayer bailout in the financial crisis.
RBS said in a statement: "The strategic attractiveness of Williams & Glyn has been reflected in a number of informal approaches for the business.
"Therefore whilst continuing preparations for an initial public offering (IPO), we are planning to launch a trade sale process in (the first half of) 2016, and targeting the signing of a binding agreement to sell the business by year-end 2016, with full divestment by the end of 2017." Shares in RBS rose 0.1p to 288.9p.
AstraZeneca (LON:AZN) rose 34.5p to 4425.5p as it continued its buying spree with the acquisition of Japanese giant Takeda’s respiratory business for US$575mln.
The earnings-enhancing deal gives it the rights to roflumilast, a treatment for obstructive pulmonary disease, the catch-all name for conditions such as emphysema and chronic bronchitis.
AstraZeneca bought ZS Pharma last month and has confirmed market talk that it is "exploring potential strategic options" with Dutch-US group Acerta Pharma.
The Takeda deal is the latest consolidation move in the industry, with rival Shire rumoured to be revising its bid for Baxalta and also considering other bolt-on acquisitions. Shire (LON:SHP) shares rose 107p, or 2.56%, to 4289p.
The FTSE 100 Index rose 26.71 points to 6044.5 as investors brace for the first US interest rise in almost ten years.
Asia was strong, with Tokyo and Hong Kong both adding 2% as investors adjusted for the Fed decision. China's Shanghai Composite closed slightly up.
Back in the London market, investors pulled out of Alecto Minerals (LON:ALO) by 0.01p, or 10.8%, to 0.06p as the miner unveiled plans to work with South Afrcian consultancy group PenMin to develop Matala and Dunrobin, its recent gold mine acquisitions in Zambia. It also put the potential cost of getting Matala into production at US$18mln.
Video editing firm Forbidden Technologies (LON:FBT) gained 0.12p to 8.5p as it unveiled a partnership with Red Letter Days and its social video network Eva.
MARKET PREVIEW
More gains are predicted when London opens as investors brace for the first US interest rise in almost ten years.
Financial spread bet firms see FTSE 100 adding 20 points at the open after the index surged 144 points or almost 2.5% yesterday to 6,018.
Overseas markets also enjoyed themselves ahead of the rate decision this evening, with the Dow Jones Industrial Average 157 points higher at 17,525, with big gains as well for the S&P 500 and Nasdaq.
Once the deed is done, attention will switch to how quickly a second rise will follow and it is what Fed chair Janet Yellen says on this that may set tone for markets on Thursday.
Asia was strong with the exception of China, with Tokyo and Hong Kong both adding close to 2% as investors adjusted for the Fed decision.
There is some UK company news expected with electrical retailer Dixons Carphone’s half year results.
How it fared over the recent Black Friday/Cyber Monday weekend will be one thing City folk will watch for, though store closures may also be something to keep an eye on.