Takeover talk and oil stocks helped the London market to notch up healthy gains today.

Bidders circling British supermarket chain Somerfield will learn this week if their £1bn-plus offers have gained boardroom support, it was reported today.

Budget British retailer MK One was gearing up for a major expansion today after Icelandic group Baugur confirmed it had bought the chain in a deal worth £55m (€78.8m).