LONDON (AFP) — London's FTSE 100 gained on Monday amid rising oil prices and talk of a possible deal between banks in Britain and Germany, traders said.
In early afternoon trading, the index of leading shares was up 0.54 percent at 5,651.20 points.
Lloyds TSB's share price fell 1.15 percent to 323.75 pence as investors reacted to a report in The Times which said the bank was considering ways of winning control of German bank Dresdner, possibly by offering to swap assets with Dresdner's parent Allianz.
Such a deal would value Dresdner at about six billion pounds, the paper said.
Insurance giant Allianz owns Dresdner which has hit hard times as a result of the US subprime home loans crisis and subsequent credit squeeze.
Lloyds TSB, however, has emerged relatively unscathed from the subprime fallout.
The report said that one idea believed to be under discussion was a straightforward swap between Lloyds and Allianz.
It would result in Lloyds handing over its Scottish Widows life insurance business in exchange for Dresdner's retail operations, the daily said.
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