Jan. 27 (Bloomberg) -- The U.K.'s FTSE 100 Index rose to the highest in more than four years. Shares of Peninsular & Oriental Steam Navigation Co. surged as Dubai and Singapore compete to buy Britain's largest port operator.

BHP Billiton and Anglo American Plc paced gains among mining stocks as the price of copper climbed to a record.

The FTSE 100 advanced 64.2, or 1.1 percent, to 5786.80, the highest since June 2001. The measure added 2 percent in the week.

The FTSE All-Share Index climbed 33.57, or 1.2 percent, to 2941.08. Ireland's ISEQ Overall Index gained 95.33, or 1.3 percent, to 7586.54, buoyed by Bank of Ireland Plc. The Irish gauge added 2.2 percent in the last five days.

``Mergers and acquisitions are going to continue at a fast pace and will continue to support the equity market,'' said Hugh Sergeant, head of U.K. equities at SG Asset Management, which manages the equivalent of $6.2 billion.

P&O climbed 4.8 percent to a record 547 pence after Dubai's DP World raised its offer to 3.88 billion pounds ($6.9 billion), topping a bid from Singapore's PSA International Pte, which was backed by P&O directors yesterday. PSA offered 3.55 billion pounds.

BHP, the world's largest mining company, gained 1.2 percent to 1,052 pence. Anglo American Plc, the world's No. 2, rose 3.1 percent to 2,187 pence.

Copper futures reached a record for a second day in Shanghai on expectations that demand from China will increase. The metal gained as much 1.9 percent to a record $4,865.3 a metric ton in London amid speculation that supply won't meet demand this year.

Corus Jumps

BHP, the biggest coking coal exporter, also benefited from an agreement with Japanese steelmakers on annual prices for ore, which were higher than some analysts expected. Xstrata Plc, the No. 1 exporter of coal used at power plants, added 2.1 percent to 1,635 pence.

Corus Group Plc, the U.K.'s biggest steelmaker, jumped 15 percent to 72 pence as Mittal Steel Co., the world's largest, made an unsolicited bid to buy rival Arcelor SA for 18.6 billion euros ($22.7 billion).

The combined company would control 10 percent of the world's steel through the industry's biggest takeover ever.

``The fact that two leading companies in the industry may take part in mergers is sending a positive message,'' said Filippo De Luca, who helps manage $1.1 billion at LMF Sercizi Finanziari SA in Lugano, Switzerland. ``This is a market that can be sustained by merger and acquisition.''

Bank of Ireland, the biggest Irish lender by assets, climbed 2.9 percent to 14.09 euros.

Oil Stocks Rise

Energy stocks including BP Plc advanced as the price of oil rose. Crude for March delivery gained as much as 2.3 percent to $67.80 a barrel in New York on concern that a standoff over Iran's nuclear research may cause disruptions to supply from the world's fourth-largest producer. The futures last traded at $67.35.

BP, Europe's biggest oil company, increased 1.7 percent to 665.5 pence, while Royal Dutch Shell Plc, the region's No. 2, added 2.1 percent to 1,874 pence.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

Bespak Plc (BPK LN) surged 51.5 pence, or 8.8 percent, to 636.5. The medical equipment maker will make inhalers for Pfizer Inc.'s Exubera insulin treatment, which won European Union sanction yesterday and may get U.S. approval soon, Chief Executive Officer Mark Throdahl said.

Business Post Group Plc (BPG LN) plunged 57.5 pence, or 14 percent, to 352 after the postal delivery service said for the third time in five months that profit for the financial year will miss analysts' estimates. The company said profitability at its parcel unit isn't improving as expected.

GlaxoSmithkline Plc (GSK LN), Europe's largest drugmaker, rose 29 pence, or 2 percent, to 1,469. Mark Purcell, an analyst at Deutsche Bank AG, raised the company's share-price estimate to 1,570 pence from 1520.

Lookers Plc (LOOK LN) soared 92 pence, or 18 percent to 601 after rival Pendragon Plc (PDG LN), the U.K.'s biggest car retailer, said Lookers rejected its approach this month. Pendragon on Jan. 12 offered 1.15 new Pendragon shares for each Lookers share, valuing the stock at 600 pence. Pendragon surged 11 percent to 536 pence.

Premier Farnell Plc (PFL LN), the electronics distributor with clients including Honeywell International Inc., advanced 6.75 pence, or 3.4 percent, to 208.5. The company will cut 175 jobs at its BuckHickman InOne tools and safety-equipment unit. Premier Farnell also said it will drop unprofitable contracts.

Smith & Nephew Plc (SN/ LN), Europe's largest seller of orthopedic devices, climbed 24.5 pence, or 4.5 percent, to 571. The shares gained as Stryker Corp. of the U.S., the world's third-largest maker of artificial hips and knees, said fourth- quarter profit rose 14 percent, helped by sales of surgical equipment and instruments.

Stanley Leisure Plc (SLY LN) jumped 34.5 pence, or 4.8 percent, to 754. Britain's largest casino operator said it was awarded a license to open a casino in the city of Nottingham in central England. The club will be the first in the area.

Tate & Lyle Plc (TATE LN) lost 15.5 pence, or 2.6 percent, to 573.5. Shares of the world's biggest sugar refiner were downgraded by Merrill Lynch & Co. to ``sell'' from ``neutral'' as prices increased less than predicted.

Taylor Nelson Sofres Plc (TNN LN), the world's second- biggest market-research company, climbed 13.75 pence, or 5.9 percent to 247.25. Morgan Stanley upgraded its stock recommendation to ``overweight'' from ``equal-weight.'' The brokerage raised the price estimate 16 percent to 260 pence.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.

Last Updated: January 27, 2006 12:49 EST