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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