FTSE 100 watch: M&A buzz props up Footsie

FTSE 100 watch: M&A buzz props up Footsie

The UK benchmark index has advanced into positive territory in today’s session, with investors shrugging off Greece’s debt concerns and focusing on deal activity. International Consolidated Airlines (LON:IAG) has been among the standout blue-chip risers after the Irish government agreed to sell its stake in Aer Lingus (LON:AERL) to the British Airways and Iberia parent.

As of 12:28 BST, the FTSE 100 had added 40.64 points to stand 0.58 percent higher at 6,989.63, with investors focusing on merger and acquisition news.
IAG’s share price has gained 0.83 percent to 549.00p after the Irish government, Aer Lingus’ second-biggest shareholder, passed a regulatory hurdle .
Shares in building materials supplier CRH (LON:CRH) have been in demand after the company announced that its €6.5 billion (£4.60 billion) deal to acquire assets from France’s Lafarge and Switzerland’s Holcim as part of their merger had been accepted by both firms . CRH’s share price currently stands 2.36 percent higher at 1,818.00p.
The Weir Group (LON:WEIR) has been among today’s biggest blue-chip fallers with Deutsche Bank moving its rating on the stock from ‘buy’ to ‘hold’.
“Six months ago we said that a bottoming in the US rig count should drive Weir shares higher; with that bottom now seemingly imminent, the question is: what’s next?,” the analysts said, as quoted by the Guardian. Weir’s share price is 1.43 percent worse off at 1,973.36p.
Toby Campbell-Gray, head of trading at Tavira Securities, today told Reuters that the backdrop of corporate takeover activity would enable the market to maintain its upwards trajectory.
“The fact that there is this M&A activity will underpin this market,” he pointed out.
**The FTSE 100 was 0.54 percent up at 6,986.64 points as of 12:50 BST on May 27, 2015.**

By Alice Young
Alice joined the Invezz team after motherhood convinced her to make a career change from actuary-ing. She brings a forensic eye for detail developed through crunching numbers on underwriting satellite insurance and the like.
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