Financial News

LONDON (ShareCast) - Anglo American (LSE: AAL.L - news) shares have shot forward on the confirmation of a merger approach from Xstrata (LSE: XTA.L - news) .

In a statement, Xstrata said a merger was "highly compelling" and would provide "enhanced scale and financial flexibility to fund future growth" but Anglo seems less than keen so far.

Lonmin (LSE: LMI.L - news) has taken a hit as Xstrata could be forced to sell its 24.9% stake in the platinum miner if it pursues its Anglo ambitions.

British Airways (LSE: BAY.L - news) is a faller on arch rival Richard Branson's comments that it should be allowed to go bust if its financial problems worsen and should not get any UK state aid.

Rumours are circulating that BA is contemplating offloading the OpenSkies subsidiary set up in 2008 to fly from continental Europe to the US. The airline has denied reports that it is seeking a government bail-out. "We are opposed to state support and our position on that has not changed," a spokeswoman said.

FTSE 100 - Risers Anglo American (AAL) 1,718.00p +5.85% Smiths Group (LSE: SMIN.L - news) (SMIN) 667.50p +2.85% Bunzl (LSE: BNZL.L - news) (BNZL) 487.25p +0.78% Severn Trent (LSE: SVT.L - news) (SVT (SVTV.PK - news) ) 1,112.00p +0.72% Hammerson (HMSO) 315.50p +0.72% Admiral Group (LSE: ADM.L - news) (ADM) 876.00p +0.69% RSA Insurance Group (RSA) 125.90p +0.64% Lloyds Banking Group (LSE: LLOY.L - news) (LLOY) 70.41p +0.59%

FTSE 100 - Fallers Lonmin (LMI) 1,170.00p -6.40% British Airways (BAY) 128.00p -6.16% Vedanta Resources (LSE: VED.L - news) (VED) 1,340.00p -5.77% Balfour Beatty (LSE: BBY.L - news) (BBY) 298.75p -5.61% Fresnillo (LSE: FRES.L - news) (FRES) 536.00p -5.38% Kazakhmys (LSE: KAZ.L - news) (KAZ) 604.50p -5.18% Tullow Oil (LSE: TLW.L - news) (TLW) 881.50p -4.70% BG Group (LSE: BG.L - news) (BG.) 1,016.00p -4.69%