Rolls-Royce has slipped 2p to 602p after news of a possible joint bid with Daimler for German engine maker Tognum.
Rolls said the three sides were in "constructive discussions" about acquiring the majority of Tognum, which makes engines for yachts and trains as well as small power plants. Daimler used to own the whole of Tognum and still retains a 28.4% stake. A deal to buy Tognum could be worth as much as €3bn.
Overall the market is still holding onto its gains despite soaring oil - Brent crude is now nearly $2 higher at nearly $118 a barrel - on worries about a civil war in Libya, and the continuing problems with European sovereign debt. The FTSE 100 is up 35.01 points at 6025.40 and Joshua Raymond, market strategist at City Index, said:
We have seen investors come in to buy stocks after a somewhat aggressive sell off in later trading in Friday.
There is a lack of economic data out today and so trading has been given a bit of a free reign. All three heavyweight sectors; miners, energy and banking stocks are higher today with the latter gaining the most.
However, any gain made in trading was lacking in energy somewhat with investors clearly trading with a fixated eye on developments in Libya – where fighting has intensified over the last few days – and any subsequent spikes in the price of crude oil.
