FTSE 100 up over 4,900 thanks to Cadbury

London rises as Cadbury eyed

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Monday, 07, Sep 2009 05:43

FTSE 100 up over 4,900 as Cadbury 'deal' sweetens traders

The FTSE 100 rose over the 4,900 mark today – hitting the highest level in 2009 so far – with Cadbury leading the gains up 37.85 per cent.

The index closed Monday up 1.68 per cent – or 81.48 points – to 4,933.18.

Cadbury rose 37.85 per cent after it emerged the Curly Wurly maker had snubbed a £10.2 billion takeover bid from US food giant Kraft.

Lonmin was up 5.89 per cent – as traders weighed up the chances of the miner also being targeted – and TUI Travel gained 4.61 per cent.

Lloyds Banking rose 4.45 per cent to 106.31p, and Association British Foods gained 4.13 per cent after solid results.

Only four stocks out of the top hundred dropped today – with Thomson Reuters leading the small pack down 1.68 per cent.

Shire was down 0.67 per cent, Standard Life fell 0.56 per cent and Petrofac fell 0.22 per cent.

Over in the US, markets were closed for Labour Day.

David Jones, chief market strategist at IG Index, said: "The day has been dominated by the Kraft/Cadbury takeover story with many suspecting that the rejected bid is just the start, with the possibility of a revised offer, or, other suitors emerging in the days ahead.

"Either way, it has definitely helped investor sentiment. The last 18 months has unsurprisingly been a bit scarce for M&A activity - some today have seen the Cadbury’s story as further confirmation that economies continue to be on an upward slant with a more optimistic view than we have had for some time."

He added: "As markets still look a little overheated at these heady levels the odd slip along the way should be expected, but for now 5000 is firmly in everyone's sights and any weakness is likely to be viewed as a topping-up opportunity."