UK Stocks Blooms as International Power Leads Gains

U.K. stocks advanced, erasing earlier losses, as gains in International Power Plc (IPR) overshadowed declines in bank shares.

International Power jumped 3.3 percent after GDF Suez SA raised its offer to buy the 30 percent stake in the company that it doesn’t already own. Lloyds Banking Group Plc (LLOY) led a drop in financial stocks as Spanish bond yields rose to a four-month high.

The benchmark FTSE 100 Index (UKX) increased 0.2 percent to 5,663.6. The benchmark gauge has lost 5.1 percent since March 16, when it reached its highest close so far this year. The broader FTSE All-Share Index (ASX) climbed 0.1 percent, while Ireland’s ISEQ Index slipped 0.1 percent.

International Power advanced 3.2 percent to 417 pence. GDF Suez, Europe’s biggest utility by market value, agreed to buy the remaining 30 percent stake in the company for 6.4 billion pounds ($10 billion). The revised bid of 418 pence a share is 7 percent more than an earlier offer of 390 pence that was rejected as too low this month.

Lloyds lost 3.1 percent to 29.81 pence as a gauge of London-listed lenders fell 0.6 percent. Royal Bank of Scotland Group Plc (RBS) retreated 1.8 percent to 24.59 pence.

The Spanish 10-year bond yield rose to 6.12 percent, the highest since Dec. 1. European and U.S. equities sank on April 13 after Spanish benchmark yields edged toward 6 percent, reigniting concern that the euro area’s debt crisis will worsen. China also reported economic growth the same day that slowed more than forecast. Asian stocks extended the global selloff today.

Leave a comment