By Carla Mozee, MarketWatch
British Airways parent, Imperial Tobacco gain
U.K. stocks jumped Wednesday, following reports Greece and its
creditors were getting close to a debt deal, and as International
Consolidated Airlines PLC and Imperial Tobacco Group PLC each rose
on deal talks.
The FTSE 100 gained 1.2% to 7,033.33, the highest close in
nearly three weeks, after media reports late Wednesday afternoon
indicated that Greece's Prime Minister Alexis Tsipras is nearing a
deal with international creditors. The Stoxx Europe 600 equity
index rallied, ending higher by 1.3%
(http://www.marketwatch.com/story/european-stocks-gain-ground-with-iag-shares-cruising-higher-2015-05-27).
The two sides have for months been deadlocked in negotiations
over economic reforms needed for Greece to unlock its next round of
bailout funds. Fears that Greece may be compelled to exit the
eurozone have weighed on U.K. and European markets.
On the FTSE 100, shares of Imperial Tobacco popped up 3.3% after
a U.S. regulator said Reynolds American Inc. (RAI) and Lorillard
Inc. (LO) must sell four cigarette brands to Imperial as a
condition for approving the companies's $27.4 billion merger. The
Winston, Kool, Salem and Maverick brands will be sold to Imperial
(http://www.marketwatch.com/story/reynolds-lorillard-tobacco-merger-cleared-by-ftc-2015-05-26).
Also, Reynolds will have to divest to Imperial the Lorillard
manufacturing facilities in Greensboro, N.C.
International Consolidated Airlines picked up 3.2% after the
Irish government late Tuesday gave its backing to IAG's plan to buy
carrier Aer Lingus
(http://www.marketwatch.com/story/irish-govt-backs-iags-plan-to-buy-aer-lingus-2015-05-26).
The board of Aer Lingus has said it supports the plan, which
requires shareholder approval. IAG is the parent company of British
Airways.
But the best performer was Irish building-materials company CRH
PLC . Shares gained 3.6% as Holcim AG and Lafarge SA accepted CRH's
offer, made in February, to buy some assets from the cement
companies, which are working on wrapping up a merger.
Shares of only five FTSE 100 companies finished lower on
Wednesday. Weir Group PLC fell 0.7% following a ratings downgrade
of the energy-engineering firm to hold from buy at Deutsche
Bank.
U.K. stocks on Tuesday finished lower
(http://www.marketwatch.com/story/london-stocks-on-track-to-break-winning-streak-2015-05-26),
logging their first loss in six sessions.
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