* FTSE 100 up 0.4 pct
* Oil stocks lead gains
* Bond proxies recover
* Bookmakers hit by FOBT limit worries(Updates prices, adds detail)
By Kit Rees and Helen Reid
LONDON, April 24 (Reuters) - A sustained surge in oil stockshelped Britain's top share index climb further on Tuesday toseven-week highs as pressure on defensive stocks such asutilities eased and a fifth bid from Takeda Pharmaceuticalboosted drugmaker Shire.
The blue-chip FTSE 100 index was up 0.4 percent at7,425.40 points by the close, while mid-caps tumbled 0.6percent.
The FTSE was set for its sixth day of straight gains, itslongest winning streak in nearly one year.
The energy sector was the biggest contributor to the bounce,adding 19 points to the FTSE as shares in BP and RoyalDutch Shell climbed 2.3 percent and 1.2 percentrespectively.
Energy stocks have been buoyed by resurgent crude prices,which passed the $75/barrel mark, their highest level since late2014 on expectations that supplies will tighten with demandstrong.
Joining oil stocks at the top of the FTSE was Shire,up 3.4 percent after Takeda Pharmaceutical made its fifthtakeover proposal for the drugmaker, sweetening its $62 billionbid before a deadline to strike a deal expires on Wednesday.
Shire gave no details of the revised bid and said the boardwas considering its position.
In other deal news, the British government gave the greenlight to Melrose's takeover of engineering firm GKN. The approval sent Melrose shares down 2 percent asinvestors braced for the 8 billion pound deal to go through.
RISING BOND YIELDS
Shares in 'bond proxy', or defensive, stocks such asconsumer staples and utilities recovered somewhat despite U.S.10-year Treasury yields breaching the psychologicallysignificant 3 percent level.
They had come under pressure on Monday as investors becamemore anxious about rising bond yields, which can make thesestocks' reliable dividend streams less attractive to someinvestors.
But Unilever shares were up 1.4 percent by theclose on Tuesday, and utilities National Grid, SSEand United Utilities also gained.
Shares in bookmaker Paddy Power Betfair brought upthe rear on the FTSE with a 4.9 percent fall, while mid-cap peerWilliam Hill sank 12.7 percent and GVC Holdingsfell 6 percent following reports that the UK government will cutthe top limit on fixed odds betting terminals (FOBTs) to 2pounds sterling.
The falls among betting stocks helped send the FTSE 250 down0.6 percent.
"While this is bad news for the multi-channel operators, wesuspect the market may be equally concerned by the suggestion inthe same article that any tax shortfall could be offset bygaming tax increases elsewhere," analysts at Davy said in anote, referring to an article in The Times.
Focus shifted on Tuesday to upcoming earnings reports, withUK banks set to be in the spotlight later this week.
"As the week now pans out, we're going to have first quarternumbers from Lloyds, Barclays and RBS... so if there is to be any sense of optimism coming out of theQ1 earnings season, clearly financials are going to be part ofthat," said Richard Hunter, head of markets at interactiveinvestor.(Reporting by Kit Rees and Helen ReidEditing by Gareth Jones)
BP (BP.)