FTSE 100 edges up

Corus rose 0.7 percent on talk of a rival bid for the steelmaker, which has agreed to be bought by India's Tata Steel.

Analysts and bankers did not rule out a rival bid but said its chances of success would be low given that Tata had financing in place. Russia's Severstal declined to comment on possible interest in Corus and Germany's ThssenKrupp denied media reports it was considering a bid.

British Energy led the decliners, down 0.7 percent after Credit Suisse cut its target price.

Oil stocks fell after U.S. crude oil prices steadied at just over $59 a barrel after Saudi Arabia told Asian refiners of supply cuts, tempering market scepticism over OPEC's resolve for curbing output.

BP fell 0.4 percent while Royal Dutch Shell slipped 0.5 percent. Shell said on Monday it had proposed to acquire the minority shares in Shell Canada.

Mining stocks were mixed, with copper futures down and gold hovering below $600 an ounce and failing to hold last week's gains.

Kazakhmys was steady but Antafogasta was up 0.6 percent. India is to allow foreign and other mining firms to enter the coal mining sector next month to help increase energy supplies in the country, the Economic Times said on Monday.