Blue chip shares surged at the end of the week, amid a new deal for telecoms group BT's broadband unit and bid talk surrounding oil giant BP.
The FTSE 100 Index jumped 49.1 points to 7363 in afternoon trading, as the country's largest telecoms group concluded a long-running deal to separate its key broadband services unit Openreach.
The unit builds and maintains the tens of millions of copper and fibre lines that run from telephone exchanges to homes and businesses across the UK, and is also used by rivals such as Sky and TalkTalk.
However, critics had argued the business, which has been slammed for poor service, should have been entirely sold-off by telecoms giant. Shares in BT lifted 4%, or 13.3p to 343.5p.
BP was also a big riser in the top flight after fresh speculation that the world's largest listed oil company, ExxonMobil, is considering making a bid for the UK's second largest oil firm. Shares in BP rose more than 3%, or 15.3p to 469.3p.
The biggest afternoon risers in the FTSE 100 Index were BT (+13.3p to 343.5p), BP (+15.3p to 469.3p), Glencore (+7.5p to 314.5p), Paddy Power Betfair (+205p to 8825p), Morrisons (+4.4p to 235.2p).
The biggest afternoon fallers in the FTSE 100 Index were Capita (-9.5p to 539.5p), Intu Properties (-3.5p to 278.7p), International Airlines Group (-7p to 564p), British Land Company (-6.5p to 615.5p) and Hammerson (-6p to 583.5p).
The biggest afternoon risers in the FTSE 250 Index were esure (+17.5p to 240p), Ferrexpo (+7p to 146.3p), Tullow Oil (+10.3p to 253.5p), Centamin (+6.5p to 162.8p) and John Laing (+10.3p to 262.3p).
The biggest afternoon fallers in the FTSE 250 Index were Aldermore Group (-17.2p to 222.8p), Auto Trader Group (-21.8p to 379p), Segro (-22.2p to 474.4p), Ibstock (-8p to 204p) and JD Wetherspoon (-36p to 929p).