U.K. stocks rose, snapping a three- day slump, paced by Anglo American Plc, Barclays Plc and Royal Bank of Scotland Group Plc.

“We remain positive on the outlook for U.K. equities considering the favorable earnings reports and continued M&A speculation,” said Rupert Cecil, who helps manage $13.4 billion as the head of U.K. equities at Kleinwort Benson in London.

“We would use the recent weakness to pick up some of the oversold names like Royal Bank of Scotland where the underlying story remains very much intact.”

The FTSE 100 Index added 82.20, or 1.4 percent, to 6082.90 at 9:48 a.m. in London. The FTSE All-Share Index increased 1.4 percent to 3161.38. Ireland’s ISEQ Index advanced 1 percent to 9148.31.

U.S. stocks rebounded following the close of trading in Europe yesterday after Lehman Brothers Holdings Inc. said bad home loans won’t curtail earnings, helping erase a 136-point tumble in the Dow Jones Industrial Average.

Anglo American, the world’s second-largest mining company, jumped 66 pence, or 2.8 percent, to 2420. BHP Billiton, the world’s largest, increased 67 pence, or 2.9 percent, to 2421 pence.

Copper futures in Shanghai advanced to a two-week high as a drop in global stockpiles indicated supplies of the industrial metal may be lagging behind demand. Nickel rose to a record on the London Metal Exchange for a fourth consecutive day.

Barclays

Barclays, the U.K.’s third-biggest bank, gained 15 pence, or 2.2 percent, to 688.5. Merrill Lynch & Co. said the company’s valuation is “compelling.” Royal Bank of Scotland, the U.K.’s No. 2 bank by market value, added 34 pence, or 1.7 percent, to 1989.

BP, Europe’s second-largest oil company, climbed 5.5 pence, or 1.1 percent, to 513. Crude oil was little changed near a record close in New York amid concern over a possible disruption to supplies from Iran and speculation increased fuel demand in the U.S. may outpace production.

Cadbury Schweppes Plc added 25 pence, or 4.2 percent, to 627. The U.K. maker of Dairy Milk chocolate and Dr Pepper soda said it will split into two businesses focusing on confectionery and beverages, after billionaire investor Nelson Peltz purchased a stake in the company.

More information will be provided with the release of an update on its activities scheduled for June 19, London-based Cadbury said today in a statement. The candy maker’s products will include Trident and Bubblicious gum, while the beverage company will make soft drinks under brands such as 7 Up and Canada Dry.

Cadbury Split

Cadbury has been under pressure to split after saying March 13 Peltz had amassed a 2.98 percent stake, according to Goldman, Sachs & Co. The shares have risen 11 percent this week as investors bet that a separation would free the faster-growing beverage business from the confectionery unit, where sales stagnated last year due to record summer heat and a product recall.

BAE Systems Plc rose 13.75 pence, or 3.2 percent, to 443.75. Citigroup Inc. raised its recommendation on Europe’s largest weapons maker to “buy” from “hold.”

“At times of economic uncertainty, defense stocks look more attractive and we like the defense industry fundamentals right now,” the bank wrote in a research note.

The following stocks also rose or fell. Stock symbols are in parentheses after company names.

U.K. Companies:

Aegis Group Plc (AGS LN) increased 6.75 pence, or 5 percent, to 143. The world’s biggest independent buyer of advertising space said full-year profit increased 23 percent after the company won new business in digital marketing services.

Cattles Plc (CTT LN) added 3 pence, or 0.7 percent, to 406.25. The lender to low-income borrowers in Britain reported full-year net income of 91.8 million pounds ($179 million) from 80.5 million pounds.

Centaur Media Plc (CAU LN) dropped 4 pence, or 2.6 percent, to 151. The U.K. publisher of business magazines including The Lawyer said fiscal first-half profit fell 25 percent after sales declined in its events division.

Charter Plc (CHTR LN) gained 59.5 pence, or 7.4 percent, to 866. The world’s biggest maker of welding gear said full-year profit advanced 65 percent on demand in emerging markets and spending by utilities customers in North America.

Cobham Plc (COB LN) jumped 9.5 pence, or 5 percent, to 199.5. The U.K. provider of aerospace services and equipment posted full-year net income of 148.1 million pounds from 97.6 million pounds.

Separately, Merrill Lynch & Co. raised its share-price estimate to 215 pence from 196 pence, saying the results are “about 2 percent ahead of our forecasts, mainly through better margins and lower interest charges.”

Coda PLC (CODA LN), which develops and markets computer software, fell 7 pence, or 3.4 percent, to 201 pence after it reported full-year earnings per share of 6.2 pence from 6.5 pence. Separately, Numis Securities lowered its recommendation on the shares to “hold” from “add.”

Equator Exploration Ltd. (EEL LN), a company that explores for oil in West Africa, added 1.25 pence, or 2.9 percent, to 45 pence. The company is still in talks with a party it didn’t identify following an unsolicited approach, London-based Equator said in a statement today.

Equator said it needs as much as $50 million in “short- term” funding.

Kazakhmys Plc (KAZ LN) fell 5 pence, or 0.5 percent, to 1084. Kazakhstan’s biggest copper producer said profit more than doubled last year as the price of the metal soared and output climbed.

Premier Farnell Plc (PFL LN) increased 5 pence, or 2.8 percent, to 181.5. The U.K. electronics distributor with clients including Honeywell International Inc. said fiscal fourth-quarter profit more than doubled on improved sales in Europe and China.

Prudential Plc (PRU LN) rose 22 pence, or 3.4 percent, to 665. Britain’s second-biggest insurer said profit rose 17 percent last year as it sold more policies in Asia and the U.S.

Vodafone Group Plc (VOD LN) added 1.5 pence, or 1.1 percent, to 135.5. The world’s biggest mobile-phone company said it may sign an agreement with its Indian wireless partner, clearing a potential obstacle to its expansion in the nation of 1.1 billion people.

William Morrison Supermarkets Plc (MRW LN) increased 12 pence, or 3.9 percent, to 318 pence. The fourth-biggest U.K. food retailer reported an annual profit after cutting costs linked to the purchase of Safeway Plc.

Irish companies:

Bank of Ireland (BKIR ID), the country’s largest lender by assets, added 47 cents, or 2.8 percent, to 17 euros. ABN Amro Holdings NV placed a “trading buy” recommendation on the shares ahead of its trading statement on March 21.

“Unlike many of its peers, Bank of Ireland has a clear results-driven catalyst for share price performance next week and has no known exposure to the US sub-prime mortgage market,” ABN wrote in a research note to investors.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net