TORONTO (Reuters) - The Toronto Stock Exchange's main index closed more than 100 points higher as a flurry of take-over deals including miner LionOre and steelmaker Ipsco extended the previous session's sharp gains.The S&P/TSX composite index closed up 108.26 points, or 0.8 percent, at 13,687.00, just 26 points shy of the record high of 13,713.14.

Five of the TSX index's 10 main groups were higher, led by a 2.4 percent rise in the resource-laden materials group.

The market was boosted by continued take-over frenzy, said Irwin Michael, portfolio manager at ABC Funds.

"As long as the view is that it's cheaper for companies to buy in the marketplace, that it's accretive, I suspect this will continue," he said.

LionOre Mining International, the most active stock on the market, jumped C$4.80, or 25.3 percent, to C$23.75 after Russia's Norilsk Nickel launched a C$5.3 billion take-over bid for the Canadian miner, surpassing a rival offer by Swiss-based Xstrata.

Ipsco climbed C$9.50, or 5.8 percent, to C$174.20 after Swedish specialty steel maker SSAB said it had made a cash take-over offer for the steelmaker worth US$7.7 billion.

Shares of oil and gas companies rose 1.3 percent despite a drop in the price of US crude, which fell 49 cents to $63.19.

Canadian Natural Resources, the country's number two independent oil explorer rose C$2.96, or 4.4 percent, to C$70.31, after it said first-quarter profit soared on higher natural gas output and stronger heavy oil prices.

Elsewhere the merger front, Coeur d'Alene Mines Corp. said Thursday it would buy Bolnisi Gold NL and Palmarejo Silver and Gold in a friendly deal worth US$1.1 billion to create the world's leading primary silver producer. Shares of Coeur d'Alene slumped 19 Canadian cents, or 4.2 percent, to C$4.29.

Husky Energy rose C$1.43, or 1.7 percent, to C$86.99 after announcing late Wednesday it will buy Valero Energy's Lima, Ohio, refinery for US$1.9 billion.

Elsewhere, shares of TSX Group sagged C$5.67, or 12 percent, to C$41.77 after seven of Canada's biggest investment dealers said on Thursday they plan to launch a alternative trading system next year.

Shares of Manulife Financial slipped 49 Canadian cents, or 1.2 percent, to C$39.85 after its first-quarter profit narrowly missed market expectations, despite earnings growth and a dividend hike.

Great-West Lifeco fell 5 Canadian cents, or 0.14 percent, to C$34.95 after it said first-quarter profit rose 15 percent due in part to strong US and European sales. Market volume was a hefty 474 million shares worth C$8.1 billion. Advancers outpaced decliners 942 to 693. The blue chip S&P/TSX 60 index closed 5.63 points higher, or 0.73 percent, at 780.03.