UK small caps rise 0.5 in early afternoon trade, outperforming themid-caps, down 0.3 percent, and the blue chips, up 0.2 percent.
Biofutures gains 111 percent as it is set to raise 32 millionpounds to seal the acquisition of Platinum NanoChem, and after a suspension oftrading of the stock is lifted.
"They made a big acquisition which is very bullish for them, and the markethas reacted bullishly with it," Steve Asfour, head of trading at Fox DaviesCapital, says.
Talvivaara gains 34 percent, having surged as much as 70 percentafter announcing that shareholders had approved a rights issue to raise capitalto help save its mine.
"The fully underwritten nature of the transaction and the fact that Solidium(the State owned investment company) and Varma are supportive should be takenwell by the market," analysts at Liberum say in a note, reitarting a 'buy'rating on the stock.
"With near term financial worries addressed we still expect more share pricerelief following the serious balance sheet stress."
Reuters messaging rm://alistair.smout.thomsonreuters.com@reuters.net