European Shares Set to Rise on M&A Activity


European shares were set to rise on Monday, adding to the previous session's sharp gains as mergers and acquisitions activity continue to fuel a recovery in equity markets around the world.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 24 and 31 points higher, the German DAX 36 to 45 points higher and the French CAC 40 30 to 43 points higher.

China teamed up with U.S. aluminum producer Alcoa to buy a $14 billion stake in Rio Tinto on Friday, threatening miner BHP Billiton's efforts to take over Rio.

"Major M&A is again on our radar: BHP's move on Rio is under increasing pressure, as parties in China have positioned themselves to potentially block the mining giant in its offer," Oliver Stevens, head of dealing at IG Markets wrote in a note.