British Energy bids power FTSE early; oils rise

By Rebekah Curtis

LONDON, May 16 (Reuters) - British blue-chip shares rose 0.5 percent early on Friday, as British Energy (BGY.L: Quote, Profile, Research, Stock Buzz) powered ahead on receiving bid approaches at a premium and British Airways (BAY.L: Quote, Profile, Research, Stock Buzz) climbed after setting its first dividend since 2001.

Heavyweight oil stocks tracked higher with crude prices, which approached $125 a barrel, led by the bullish heating oil market as China and Europe scramble for barrels, thinning global supply.

Oil major BP (BP.L: Quote, Profile, Research, Stock Buzz) and its rival Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) both added 1.1 percent and BG Group (BG.L: Quote, Profile, Research, Stock Buzz) put on 1.4 percent.

Nuclear power generator British Energy (BGY.L: Quote, Profile, Research, Stock Buzz) leapt 5.7 percent to 718.5 pence to top the FTSE 100 .FTSE leaderboard after saying it had received a range of takeover proposals, including some priced above Thursday's 680-pence close. For more double-click on [ID:nL16300245].

Centrica (CNA.L: Quote, Profile, Research, Stock Buzz), which rose 0.3 percent, and France's EDF (EDF.PA: Quote, Profile, Research, Stock Buzz) were prepared to make offers at less than 700p/share, sources familiar with the matter told Reuters last week.

By 0752 GMT the FTSE 100 was up 34 points at 6,285.8, as shares rose across Europe. Overnight U.S. stocks rose, with the S&P 500 hitting its highest close since January.

"Confidence does seem to be coming from the suggestion that the U.S. economy has ridden out the storm...so the FTSE may have more legs in it even yet," said Neil Parker, a strategist at Royal Bank of Scotland.

"(But) there's still a lot of nervousness out there. By no means are we going into this blind, there are still a lot of people trading very cautiously," he added.