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(Sharecast News) - London stocks rose in early trade on Wednesday, with Beazley pacing the gains on takeover news.
At 0840 GMT the FTSE 100 was up 0.4% at 10,359.52, having reached a fresh high of 10,383 earlier.
The index took a hit in the previous session as a host of stocks tumbled amid worries about the impact of AI, after Google-backed Anthropic launched a new AI tool.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "The announcement spooked markets, triggering a sharp selloff in software companies that sell data analytics and decision-making tools to lawyers, banks and corporates, on fears that AI and new players are coming for their lunch - and at an accelerated pace."
The mood was much brighter on Wednesday, however, with Beazley surging to the top of the FTSE 100 after it and Zurich Insurance said they have reached an agreement in principle on the terms of an 8bn takeover of the Lloyd's of London insurer.
Zurich will pay 1,335p per share, which is a 59.8% premium to the closing share price on 16 January, the last business day before the offer period. The offer comprises 1,310p in cash and a dividend of 25p for the year ended December 2025.
Beazley had previously rejected offers of 1,280p a share and 1,230p a share, saying they "materially" undervalued the group.
Fellow Lloyd's of London insurer Hiscox also racked up strong gains.
Energy sales, marketing and support services business DCC rallied after it said thirdquarter adjusted operating profits had grown strongly yearonyear on a continuing basis, supported by solid organic growth and a firsttime contribution from recently acquired Austrian LPG business, FLAGA.
GSK rose even as it said turnover growth would slow this financial year as it looked to counter the expiry of an HIV drug patent and a deal with the Trump administration to lower product prices in the US. The company expects sales to grow 3% to 5% this year, on a constant currency basis compared to 7% in 2025.
Housebuilder Berkeley Group was boosted by an upgrade to 'overweight' from 'neutral' at JPMorgan, which also hiked the price target to 5,000p from 4,700p.
SSE edged up despite forecasting a dip in annual earnings as mixed weather conditions offset an otherwise robust operational performance.
On the downside, Watches of Switzerland fell as it lifted its full-year sales outlook following strong trading in the third quarter but reduced its profit margin forecast.