A buoyant stock market tends to bring out the rumours, and this afternoon is no exception.
BP is 17.5p higher at 505p after traders heard tell it might be interested in bidding for US gas group Chesapeake Energy Corporation, which is worth around $9bn.
The oil sector has also been lifted by an increase in the price of crude, with Brent up nearly $1 a barrel to just over $49 on hopes that supply cuts by Opec could put a floor under the price.
Elsewhere mining group Xstrata added 18p to 698p despite suggestions its major shareholder Glencore may be looking to sell some of its stake.
Overall, with Wall Street continuing to move higher, leading UK shares are at their peak for the day, with the FTSE 100 164.37 points higher at 4216.84. This is despite poor trading news from building products group Wolseley, down 81.75p at 204.25p, and British Airways, 8p lower at 138.2p.
