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BT has reportedly taken steps to bolsters its defense against a potential takeover bid, sending the stock more than 5% higher.
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U.K. stocks surged on Monday, as investors welcomed coronavirus drug developments and BT took steps to fend off a potential takeover.
The FTSE 100 UKX, +1.71% rose 1.7%, while the more domestically-exposed FTSE 250 MCX, +0.61% index climbed 0.6% .
The U.S. Food and Drug Administration approved “emergency use authorization” on Sunday for convalescent plasma as a treatment for coronavirus. President Donald Trump is also reportedly considering a similar move to fast-track AstraZeneca’s potential coronavirus vaccine to make it available before November’s election. White House officials had previously complained politically motivated delays by the FDA in approving a vaccine and treatments were threatening Trump’s re-election chances.
Trump’s aggressive stance and the positive medical developments helped global stocks move higher. AstraZeneca AZN, +2.06% was among the biggest risers on the FTSE 100, climbing 2.1%. BT led the way, as the British telecoms giants reportedly bolstered its defenses against a potential takeover bid, and the index’s major oil companies also contributed to the gains, as rising oil prices BRN00, +1.28% boosted BP BP, +3.16% and Royal Dutch Shell RDSA, +3.99%.
Stocks in focus
BT BT.A, +7.07% stock rose 7.1%, after Sky News reported that the company has asked Goldman Sachs bankers to update its bid defense strategy in recent weeks. The company cut its dividend in May, which sent the stock to the lowest level in more than a decade.
Rio Tinto RIO, +0.95% shares rose 1%, after the world’s second-biggest mining company cut executive bonuses over the destruction of two ancient Aboriginal caves in Australia.
Bunzl BNZL, +2.57% stock rose 2.6%, as the distribution and outsourcing company reinstated dividends and announced two acquisitions.
