Investors.com: BA, ICI higher on oil price ease, Shell up on M&A hope (ShellNews.net)

By Steve Goldstein

Last Updated: 8/16/2004

LONDON (CBS.MW) -- Declining oil prices and takeover speculation around oil major Shell Trading and Transport and supermarket group Sainsbury helped lift U.K. stocks on Monday.

The FTSE 100 index (18055501805550) rose 0.2 percent at 4,311, and European markets also gained ground. See Europe markets.

Oil futures traded lower after Venezuela, after initial delays, announced the results of its presidential referendum, with Hugo Chavez retaining power.

British Airways (BAYBAY)(BAB) climbed 1.9 percent and chemicals group ICI (ICIICI)(ICI) gained 1.1 percent, as both companies are sensitive to rising energy costs.

M & A hope

Shell Trading and Transport (SHELSHEL)(SC) rose 1.2 percent after the London newspaper The Observer said that Shell executives feared a takeover bid from France's Total (TOT).

Shell peer BP (BPBP)(BP) gained 0.4 percent.

Supermarkets group J. Sainsbury (SBRYSBRY) also rose on weekend takeover talk, gaining 0.6 percent after a report in The Observer said Target (TGT) had visited Britain to check out the company, though no takeover talks have started. Sainsbury separately said it acquired Jacksons Stores, a U.K. regional convenience store chain with 114 stores across Yorkshire and the North Midlands. No terms were disclosed.

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