Advancers

Porsche announced it planned a buyout offer fo VW. Porsche rose 3.1%. Porsche was forced to launch an offer after exercising an option to take its stake above 30%, to 31% from 27.3%.

OMV gained 2% after Citigroup boosted its price target for the refiner and reiterated a buy recommendation. UK homebuilders surged. Taylor Woodrow shares rose 15.6% while Wimpey shares increased 10.4%.

French information technology services company Atos Origin shares rose 3.3% as it said that its supervisory board has decided to explore strategic options following recent expressions of interest in the company.

Decliners

Volkswagen shed 3.4% after rival carmaker Porsche said it planned a buyout offer for VW shares. Eiffage lost 5.1% as some of the bid speculation which pushed the French construction company up by 40.3% last week faded.

E.On shares declined 0.8% as it raised its offer for Endesa of Spain. E.On said that it will exercise all legal options against Enel and Acciona, which on Friday said they were considering making a bid for Endesa.

Oil and gold

Crude oil surged to its highest in three months after Iran took 15 British servicemen captive and the United Nations imposed new sanctions on the country, heightening worries supplies from the Middle East will be disrupted. Crude oil for May delivery climbed 61 cents, or 1%, to $62.89 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since Dec. 26. It was at $62.77 in early trade in London. Brent crude oil for May settlement rose 73 cents, or 1.2%, to $63.91 a barrel in electronic trading on the ICE Futures exchange.

Gold gained in London, powered higher by investors buying the metal as a haven and hedge against inflation. Gold for immediate delivery in London rose $2.60, or 0.4%, to $660.00 an ounce today.

Currencies

The dollar traded at a one-week high against the euro on speculation a U.S. government report will show a rebound in new home sales in February. The dollar traded at $1.3263 per euro in early trade in London from $1.3283 in New York March 23. Against the euro, the pound was at 67.67 pence in London, from 67.72 on March 23. It also traded at $1.9598, from $1.9614. Against the Japanese currency, the dollar traded at 118.23 Japanese yen, up from 118.05.