Shares in Boots and Alliance UniChem roared ahead today after the retail pair confirmed plans for a merger of equals worth £7bn.
Boots outstripped Vodafone as the top flight’s most heavily traded stock, with shares ahead 8% or 46.5p to 655p and Alliance 4% or 33.5p stronger at 900p.
With the latest takeover activity in the FTSE 100 helping the mood, the blue-chip index pushed ahead by 12.7 points to 5490.4 in the first hour of business.
The developments involving Boots and Alliance were seen as positive for other stocks in the FTSE, including pharmaceuticals company GlaxoSmithKline after a 15p gain to 1457p.
Elsewhere, mortgage bank Northern Rock failed to benefit from a strong third quarter trading update.
While the company said profits were in line with hopes, analysts said profit-takers had moved in to send shares 16p lower to 819p.
Other banks were encouraged by the Northern update, however, as Barclays rose 2.5p to 575.5p and Royal Bank of Scotland cheered 7p to 1616p.
Meanwhile, the latest trading woes at home furniture retailer MFI caught the eye of investors in the FTSE 250 Index.
MFI said orders were running 31% below last year and would result in a small loss for the group if the present performance continued.
With chief executive John Hancock also stepping down, shares fell 6% or 6.5p to 102.25p.
References: EGi News 03/10/05
