The FTSE 100 opens modestly higher at 7,040.6 buoyed by further sterling weakness and deal making in the tobacco sector.
Cigarette manufacturer British American Tobacco (BATS) gains 2.3% to £49.13 as it announces a $47bn offer to buy the 57.8% of US peer Reynolds American (RAI:NYSE) it does not already own. The news accompanies an otherwise robust third quarter trading update, showing good growth and increasing market share.
The proposed takeover also lifts rival Imperial Brands (IMB), up 2.9% to £39.75.
In other, more modest M&A news gaming technology firm Playtech (PTEC) is down 0.7% ay 922p as it announces a £14.9m deal to buy bingo software play ECM Systems and recently listed media group Time Out (TMO:AIM), off 0.7% at 140p unveils an all paper £2.4m deal for London-based booking platform YPlan.
And online customer acquisition specialist Digital Globe Services (DGS:AIM) is up 74% to 57.5p and Ibex Global Solutions (IBEX:AIM) gains 26.7% to 109p as a major shareholder in both, The Resources Group International, announces £18.1m and £44.3m deals respectively to take them private.
Intercontinental Hotels (IHG) slips 1.8% to £31.67 as it reports slowing growth in the third quarter.
IT infrastructure services provider Computacenter (CCC) is up 3.6% to 757.5p after confirming it will hit 2016 expectations after a resilient third quarter.
Israeli tailor Bagir (BAGR:AIM) gains 14.3% to 4p as it reveals trading is in line for 2016 and reiterates its plans to move forward on a debt free basis after a major refinancing.
Recruiter RTC (RTC:AIM) falls 33.6% to 35.5p as it warns on profits after delays to infrastructure projects.
Brick maker Michelmersh (MBH:AIM) slumps 16.3% to 52.75p as it warns on full year profits, blaming increased competition and pricing levels not reaching the levels anticipated.
Diagnostic testing kit maker Immunodiagnostic Systems (IDH:AIM) falls 18.1% to 170p as it fails to arrest declining revenue (on a constant currency basis) in its first half.
