Shares in Sportingbet surged 4% on the London market today as the online gamer said it would back an increased takeover offer from Britain's biggest bookmaker William Hill.

Sportingbet added 2.2p to 55.2p after it said it was minded to recommend the 61.1p a share offer, which values the firm at more than £400 million, to its investors.

The FTSE 100 Index was 27 points higher following a strong session on Wall Street, which was driven by positive US retail sales and increased optimism over Spain's future.

Spain is understood to be ready to apply for a credit line which would pave the way for the European Central Bank to start buying bonds, diluting the uncertainty around the struggling country and the wider eurozone crisis.

Lloyds Banking Group rose 2% to the top of the FTSE 100 amid reports the Financial Services Authority has given the green light to its plan to bolster its finances by swapping assets with its Scottish Widows life insurance arm.

Lloyds, which rose 0.9p to 41.2p, would borrow around £1 billion of liquid assets held by Scottish Widows under the deal, by using a larger pool of lower quality securities as collateral in a bid to boost its cash position.

Meanwhile, housebuilder Bellway leapt 6% after it increased its final dividend payment by 59% to 14p per share following a 57% rise in pre-tax profits to £105 million in the year to July 31. Shares were 46.8p higher at 996.8p.