FTSE rises on $8.5bn energy deal

The FTSE 100 opened higher, up 0.26% or 13.87 points to 5,289.31, supported by M&A activity in the resources sector.

Cairn Energy's shares advanced 3.57% to 485p on news it has sold a 51% stake in its Indian business to Vedanta for $8.5bn (£5.4bn). The sale will result in a cash windfall for Cairn shareholders. Vedanta shares also rose on the news by 2.63% to £21.07. Meanwhile, Aviva climbed 1.94% to 394.9p after outlining its reasons for rejecting RSA's bid for its general insurance businesses in the UK, Ireland and Canada. However, RSA is one of morning's biggest fallers, down 1.26% to 125.8p. Other casualties include Anglo American, down 1.71% to 23.30, while RBS dipped 0.47% to 46.75p On Wall...