UPDATE 2-Housebuilders lead FTSE 100 rise, buyout offer helps Merlin soar

* FTSE 100 up 0.3%, FTSE 250 rises 0.8%
* Housebuilders jump on report of cut to stamp duty, taxes
* Trump-Xi meeting on the horizon
* Pound strength aids mid-caps
* Merlin rejoices after buyout offer

(Adds news items, updates to closing prices)
By Shashwat Awasthi
June 28 (Reuters) - A report that prime minister
front-runner Boris Johnson would slash stamp duty and taxes
drove gains in housebuilders and lifted London's main index on
Friday, while Madame Tussauds owner Merlin surged after a buyout
offer.
The FTSE 100 .FTSE rose 0.2%, while the FTSE 250 .FTMC
capitalised on a stronger pound to climb 0.8%.
Housebuilders advanced after a media report said Johnson,
the leading candidate to succeed Theresa May as prime minister,
plans to cut stamp duty on house sales as part of an emergency
budget for a "no-deal" Brexit. Shares of Persimmon PSN.L , Barratt BDEV.L , Taylor Wimpey
TW.L and Berkeley BKGH.L jumped 1.5% to 4.2% and were among
the biggest gainers on the blue-chip index.
Trading was generally muted and investors were cautious with
the focus on President Donald Trump's meeting with Xi Jinping at
the G20 summit this weekend, which could dictate the course of
the U.S.-Chinese trade dispute as well as global markets.
"Expectations are being managed though, so I would think
that for Trump and Xi to agree to delay the additional tariffs
and for detailed talks to resume would be sufficient to leave
investors happy that things are moving," Markets.com analyst
Neil Wilson said.
Still, bets that the U.S. Federal Reserve would cut interest
rates guided the FTSE 100 to its best month since January,
counteracting effects of U.S. sanctions on Iran and uncertainty
ahead of the Trump-Xi showpiece.
Luxury brand Burberry BRBY.L gained 4.1% after Goldman
Sachs raised its rating on the stock.
Shares of Glencore GLEN.L , which slipped nearly 5% in the
previous session after its mine collapsed in Congo, recovered
most of those losses and added 4.2%. The miner confirmed the
accident would not impact production. Legoland operator Merlin Entertainments MERL.L moved 14%
higher on the mid-cap index after agreeing to be acquired by the
investment vehicle of Lego's founding family and Blackstone
BX.N in a 455-pence-a-share deal. Woodford Patient Capital Trust WPCT.L , whose stock has
been hammered recently because of its association with fund
manager Neil Woodford, shed 2.6%. Shares had earlier gained 3.5%
after the firm laid out plans to cut debt and refresh its board.
Airtel Africa AAF.L , a unit of India's Bharti Airtel
BRTI.NS , tanked nearly 25% on its first day of trading. Its
shares debuted on the London stock market at 77 pence, below the
IPO price of 80 pence.