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(Open): Shares in advertising giant WPP rose 2% after news of the £23bn merger between Omnicom and Publicis.
Analysts said firms such as WPP could win clients from the newly merged group as companies seek to avoid conflicts of interest.
The FTSE 100 index was up 33.65 points, or 0.5%, at 6,588.44.
Drugs firm Shire was also boosted by news of a corporate deal. It climbed 2.3% after US drugs firm Perrigo agreed to buy Ireland's Elan for $8.6bn.
However, Barclays fell 3.4% a day ahead of its latest results. Reports have suggested the bank is planning a £4bn share sale to boost its capital reserves to levels demanded by regulators.
"A capital raise... would dilute interim earnings and there is a risk of future excess capital remaining trapped in the group if regulators move the requirements once again," said Nomura.
Reckitt Benckiser shares rose 1% after the consumer goods group sais annual revenue growth was set to be at the top end of forecasts.
The company - whose brands include Dettol, Strepsils, Nurofen and Cillit Bang - reported a 6% rise in first half sales.
The pound edged down against the dollar to $1.5378, and was slightly higher against the euro at 1.1589 euros.
Source: BBC News - Business http://www.bbc.co.uk/news/business-11899862#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
