BAT wants to buy 57.8 percent of Reynolds, which would give it ownership of the company.
Burberry was another strong performer, gaining five percent following reports that the company is a potential target for a merger with Coach.
Meanwhile, shares in Intercontinental Hotels Group are down by 0.8 percent, after the company reported that revenue growth was slowing down. It uses the metric of Revenue Per Available Room, and that measure grew by 1.3 percent in the three months leading up to the 30th September, down from 2.5 percent in the previous quarter.
The company said that it had seen declines in Revenue Per Available Room at a significant rate in Turkey, Belgium and France, where they were seeing challenging trading. All three countries have seen reduced tourist interest following terrorist attacks.
In the mid caps, Acacia Mining gained almost 12 percent after the company, which owns some gold mines in Africa, boosted its forecast for production at its Tanzania mine.
In the currency market, the pound is down by 0.3 percent against the dollar, to sit at $1.2212, and remains flat against the Euro. The downward trend in the sterling is likely still supporting the FTSE 100.