By Carla Mozee, MarketWatch
U.K. stocks gained Tuesday, with RSA Insurance Group Inc.
rallying on word of possible takeover bid, but Royal Mail PLC
shares fell following a regulator's rebuke over practices at the
postal-delivery company.
The FTSE 100 rose 0.4% to 6,529.53, on track for its first
advance in six sessions.
RSA (RSA.LN) surged 11% after Zurich Insurance Group AG
(ZURN.VX) said it's "evaluating a possible offer"
(http://www.marketwatch.com/story/zurich-confirms-its-considering-an-offer-for-rsa-2015-07-28)
for the British firm. The Swiss insurer said it can't, however,
make assurances that an offer will be presented.
Meanwhile, Hikma Pharmaceuticals PLC (HIK.LN) climbed 5.9% after
the company said it's buying Roxane Laboratories Inc
(http://www.marketwatch.com/story/hikma-to-buy-roxane-labs-for-up-to-265-billion-2015-07-28).
and Boehringer Ingelheim Roxane Inc. for up to $2.65 billion in
cash and shares. The deal is expected to push Hikma's position in
the U.S. generic drugs market.
In other deal news, GKN PLC (GKN.LN) shares popped up 5.4% after
the engineering company said it will buy Fokker Technologies Group
BV
(http://www.marketwatch.com/story/gkn-to-buy-fokker-as-it-bets-more-on-aerospace-2015-07-28)
for an enterprise value of 706 million euros ($779.98 million) from
private equity owner Arle Capital. "Aerospace has been our top
priority for acquisitions," said GKN Chief Executive Nigel Stein in
a statement.
But at the bottom of the FTSE 100 was Royal Mail (RMG.LN).
Shares fell 2.5% after regulator the U.K. Office of Communications,
or Ofcom,
(http://www.marketwatch.com/story/royal-mail-breached-competition-law-says-ofcom-2015-07-28)
said the company's changes to wholesale prices for bulk
mail-delivery services, or access services, breached competition
law by discriminating against rival operators.
BP PLC (BP.LN) shares, meanwhile, turned higher by 0.8%. The oil
major swung to a second-quarter loss
(http://www.marketwatch.com/story/bp-swings-to-quarterly-loss-on-lower-oil-prices-2015-07-28),
hurt by lower oil prices and a multibillion-dollar charge relating
to the recent deal to settle claims in the U.S. over the 2010
Deepwater Horizon disaster.
Investors will be watching later for the release of the first
reading on U.K. gross domestic product in the second quarter. Ahead
of the report, the pound was buying $1.5542 versus $1.5559 late
Monday in New York.
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