FTSE 100 edges up

Standard Chartered rose 2.2 percent on Monday after weekend media reports that Dubai government agency Istithmar might raise its stake in the Asia focused bank. There were also reports the bank could take over Singapore's DBS Group Holdings, Southeast Asia's biggest bank.

The FTSE 100 rose 5.6 points, or 0.1 percent, to 6,160.8 by 8:39 a.m. It closed down 8 points on Friday at 6,155.2 despite reaching a record intraday high of 6,199.88.

"Everybody's looking for the next bid," said Martin Slaney, head of spread betting, GFT Global Markets.

"The market is otherwise being driven by the U.S., which looks as if it has shaken off the disappointing earnings from Caterpillar," he said.

"So long as we continue to see decent earnings, we could see the FTSE 100 rise to the next resistance level of 6,200 and break new records this week."

Among financials, Prudential rose 1 percent after UBS upped its target price on the stock. The insurer's chief executive has been set a five month deadline by investors to turn round the business, the Sunday Telegraph reported, citing sources close to institutional investors.

Pharmaceuticals were strong. GlaxoSmithKline rose 0.2 percent after it said on Friday it won approval to sell a new once a day formulation of its Coreg hypertension drug.

AstraZeneca rose 0.4 percent after the FDA on Friday approved its Seroquel bipolar depression treatment.

Intercontinental tacked on 0.6 percent after announcing a new venture to operate 31 hotels in Japan.

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.