Energy stocks soar and FTSE tops 7,000 on merger mania hopes

UK-listed energy stocks have rallied strongly in early trading as investors look for more M&A activity in light of Shell agreeing a £47bn takeover of BG Group.

The BG deal sent the company's shares up some 38% to above £12.50, its highest level in more than a year, but it is far from the only beneficiary. Tullow Oil, which fell out of the FTSE 100 earlier this year as it fell victim to the tumbling oil price, saw its shares bounce 9.2% to 327.9p on speculation it too could now be taken over. Meanwhile, peer Ophir Energy rose 9% for similar reasons, while Enquest moved 5.2% higher. Shell's FTSE 100-listed peer BP also rose sharply to trade 3.8% higher at 472p a share by mid-morning, helping the FTSE 100 briefly move back above 7,000. Th...