Morning markets watch: M&A activity in mining sector buoys FTSE

The FTSE 100 opened at 5454.50 on the back of positive newsflow from the mining sector. The news b...

The FTSE 100 opened at 5454.50 on the back of positive newsflow from the mining sector. The news broke this morning that mining giant Xstrata has bid for Lonmin. The £5bn unsolicited offer for the platinum producer would give Xstrata access to its South African operations. It already owns an 8% stake in Lonmin, and is now offering £33 cash for each remaining share, an 42% premium to Lonmin’s closing share price yesterday of 2319p. This has buoyed the FTSE further following a strong closing level yesterday of 5455.30, a 2.5% rise on its opening numbers. Lonmin shares have soared over 45...