Aviva takeover of RAC buoys FTSE

The £1.1bn (€1.6bn) takeover of the RAC by insurance giant Aviva was given the thumbs up by investors today as London shares pushed forward.

Aviva shares advanced 2% or 12p to 674.5p to feature high among the blue-chip risers as the City accepted the logic of a tie-up with the 108-year-old motoring organisation.