* FTSE 100 up 0.8 pct; dropped 2.6 pct last week
* Shire up 2.6 pct on new AbbVie offer
* Sports Direct boosted by partnership with MySale
By Tricia Wright
LONDON, July 14 UK shares bounced back on Monday
after hefty falls last week, with drugmaker Shire
hitting an all-time high on a bid offer from U.S. firm AbbVie
Shire said it was ready to recommend a new offer from
AbbVie, which returned with a fifth bid valuing the
London-listed drugmaker at 31.3 billion pounds ($53.3 billion).
AbbVie, which wants to buy Shire to cut its tax bill and
diversify its product line-up, made the offer of 53.20 pounds
per share on Sunday after the Dublin-based group asked for an
improvement on the previous 51.15-pound-per-share offer.
But traders were cautious.
"What we're doing this morning is basically closing down per
client half of the exposure, so we're banking something good on
the bounce and leaving the other half on just in case (it climbs
to 53)," Galvan's head of trading, Ed Woolfitt, said.
Shire shares rose 2.6 percent to 4,998 pence, with trading
volume at 90 percent of its 90-day daily average after about an
hour's trade, against the FTSE 100 index on just 6 percent.
The FTSE 100, which dropped 2.6 percent last week to
post its biggest weekly drop since March, had climbed 52.13
points, or 0.8 percent, to 6,742.30 points by 0818 GMT.
Investors put aside concerns about euro zone banks and
looked ahead to corporate earnings, traders said.
"Corporate earnings have started to trend to the upside and
momentum indicators suggest we are going to continue to see
forward-looking estimates improve alongside EPS estimates,"
Guardian Stockbrokers' director of trading, Atif Latif, said.
Solid gains were also seen from sports retailer Sports
Direct, up 4.4 percent, after it announced plans to
launch in Australia and New Zealand by forming a partnership
with MySale Group. MySale rose 4.8 percent.
Elsewhere among the risers, Rolls-Royce tacked on 1.4
percent as European planemaker Airbus kicked off the
Farnborough Airshow with confirmation it would sell revamped
versions of its A330 wide-body jet powered by Rolls-Royce Trent
($1 = 0.5877 British pounds)
(Editing by Louise Ireland)