TORONTO (Reuters) - The Toronto Stock Exchange’s main index ended higher, powered by higher oil prices and news of Anglo-Swiss miner Xstrata Plc takeover offer for LionOre Mining International.The S&P/TSX composite index closed up 65.22 points, or 0.5 percent, at 13,302.88, rebounding from a soft start to the day on weak US housing data.

“We’ve had a couple of volatile factors that have sort of offset the negative news in the housing situation in the US,” said Elvis Picardo, investment strategist at Northern Securities in Vancouver.

“We’ve seen news of another takeover attempt, and that would be LionOre Mining, and news of a bid for it from Xstrata

The other bullish factor is rising crude oil prices, which has helped the energy group.”

Six of the TSX index’s 10 main groups were higher, led by a 1.3 percent jump in the mining-heavy materials group and a 0.9 percent climb by the energy sector.

Shares of mining companies rose 3.3 percent, boosted by merger talk after Xstrata said it would buy LionOre for C$4.6 billion in cash to widen its geographic spread. Swiss-based Xstrata bought Canadian nickel miner Falconbridge last year.

LionOre shares soared C$1.80, or 10.3 percent, to C$19.29, while zinc major Teck Cominco added C$3.23, or 4 percent, to C$83.23.

Shares of oil and gas companies rose 0.9 percent as US crude added 63 cents, or one percent, to settle at $62.91 a barrel, after touching a three-month high of $63.30 earlier in the session, amid tensions over Iran’s nuclear plans and its capture last week of British sailors.