DRINKS giant Diageo helped London's top-flight avoid more major losses today after a tough previous week, as takeover talk sent shares in the Guinness maker 7 per cent higher.
The group, whose drinks cabinet of products also includes Johnnie Walker whisky and Smirnoff vodka, was reported to be in the sights of Brazilian investment firm 3G Capital.
Diageo shares rose 128.8p to 1889.2p as the wider FTSE 100 Index slipped 5.2 points to 6799.4.
It last week dropped nearly 200 points, its worst week since December, as investors were spooked by anxiety over debt-laden Greece and its decision to postpone a €300 million (£220m) repayment to the International Monetary Fund.
There was little to ease fears over the crisis over the weekend as a war of words flew between the Greek government and the European Union over deadlocked talks on releasing much-needed bail-out cash for the country.
It was left to Diageo to provide the main source of momentum, on reports from Brazil about 3G - the firm behind Heinz and its takeover of Kraft earlier this year - contemplating an offer.
Elsewhere, on a quiet day for corporate updates, power station operator Drax was in focus after a update on trading for 2015 so far in which it revealed that conditions remained challenging.
But the company said that while it was hit by weak power prices, it benefited from a strong operational performance and contracts. Shares edged 1.7p lower to 373.8p.
