Boots buzz lifts FTSE

High street chain Boots led the FTSE 100 Index closer to the key 5000 barrier today as takeover talk gave the retailer a much-needed boost.

Boots was the highest top-flight climber after interest from private equity firms caused investors to overlook its trading troubles.

A positive close to trading in New York and a fall in oil prices were the main drivers behind the Footsie’s 10.1 point rise to 4987.1 by mid-morning.

It left the index on course to rack up its fourth consecutive session of gains following a recent spell of disappointment.

New York traders set the pace last night with the tech-laden Nasdaq cheering by 1% and the Dow Jones Industrial Average ticking up 60 points.

As well as an easing in the oil price, analysts said the rise reflected hopes for a positive earnings season in the coming weeks.

Boots advanced 3% or 19.5p to 635p as investors speculated that a sale of its healthcare arm could lead to a private equity bid for the whole of the health and beauty retailer.

Among beneficiaries of the lower oil price, British Airways rose 4.25p to 274.5p and cruise ship operator Carnival lifted 51p to 2932p.

But oil giants BP and Shell lost some of yesterday’s significant gains, retreating 5p and 4.5p to 565p and 491.5p respectively.

Elsewhere, tea and coffee retailer Whittard of Chelsea slumped nearly 20%, off 26p to 105p, after it said sales had come sharply off the boil as shoppers proved reluctant to spend over Easter.

Water group East Surrey Holdings lifted 6p to 529p after multi-millionaire financier Guy Hands’ investment company announced plans for a £435m (€633.6m) acquisition. The stock had already risen sharply yesterday after the firm said it was in takeover talks.