UPDATE 2-Oil majors lift FTSE 100, Ted Baker surges on M&A chatter

* FTSE 100, FTSE 250 up 0.1%
* Oil majors biggest boost to main bourse
* Midcap retailer Ted Baker surges on M&A reports

(Adds company news, updates shares)
By Muvija M
July 22 (Reuters) - Gains in oil heavyweights amid
heightened tensions in the Middle East helped London's main
index hold steady on Monday, while Ted Baker was in demand after
several media reports of takeover plans.
The FTSE 100 index of bluechip companies .FTSE and the
FTSE 250 midcap index .FTMC both edged higher by 0.1%.
Oil majors Shell RDSa.L and BP BP.L rose about 1% each,
tracking gains in crude prices on concerns that Iran's seizure
of a British tanker last week may lead to supply disruptions in
the Middle East. O/R
Monday's gains in the midcap bourse were led by Ted Baker
Plc TED.L with a 13.5% jump, after a media report that its
founder Ray Kelvin could back a private equity buyout of the
retailer, months after he resigned.
Tour operator TUI's TUIT.L London-listed shares rose 4.6%,
topping the FTSE 100 leader-board after Stifel resumed coverage
on the stock with a "buy" rating.
Just Eat JE.L added 2.3% after the online takeaway service
said it would lay off "a number" of jobs in Britain as it
combined its customer and restaurant operations.
Helped in part by expectations of interest rate cuts by
central banks, the exporter-heavy FTSE 100 has recovered from a
slump it had weathered in May due to global trade uncertainty,
and is currently on course for its best year since 2016.
The index, whose components roughly two-thirds of profits in
the U.S. dollar, has also benefited as Brexit jitters have
pressured the pound.
According to polls and bookmakers, Boris Johnson will become
Britain's new prime minister on Wednesday and will immediately
face the riddle that is Britain's Brexit negotiation.
"Watch for a harder tone on Brexit and the very clear
message that October 31st is a hard date. As previously argued,
the reality of parliamentary arithmetic may see this soften in
due course," Markets.com analyst Neil Wilson said.
Metro Bank MTRO.L advanced 6% after the troubled mid-cap
lender confirmed a report that it was in talks on the sale of a
loan portfolio.
The stock has plummeted 70% so far this year as an
accounting error, which eventually led to a cash call and a
warning on results, has spooked investors.
Weighing on the main index was Whitbread WTB.L , which lost
4.4% after the company said it was not planning any further
capital return to shareholders. Among smaller stocks, Petra Diamonds PDL.L tumbled 9%
after it reported full-year revenue below analysts' estimates
and said it expects next year's production to be slightly lower
amid weak demand in the diamond market.