Hikma and Barclays help Britain's FTSE to climb higher

(Fixes background story links for references to Barclays (LSE: BARC.L - news) and BATs)

* Blue-chip FTSE 100 index rises 0.4 percent

* Barclays up 2 pct, British American Tobacco up 2.7 pct

* Quintain Estates and Development (LSE: QED.L - news) surges 23.8 pct

By Liisa Tuhkanen

LONDON, July 29 (Reuters) - Britain's top share index rose for a second straight session on Wednesday after recent sharp falls, with Hikma Pharmaceuticals (LSE: HIK.L - news) leading the market higher on positive broker comments and Barclays gaining after saying it will speed up cost cuts.

Hikma shares were the biggest blue-chip gainers after a target price update from Jefferies, adding 3.6 percent to the an 11.6 percent jump on Tuesday, when it announced a deal to buy Boehringer Ingelheim's U.S. generic drugs business Roxane for about $2.65 billion in cash and stock.

"The deal has created a firm foundation for future growth," Augustin Eden, analyst at Accendo Markets, said. "Hikma shares could be bound for a return to February highs and above - still a healthy 8.5 percent away despite gains of yesterday."

The blue-chip FTSE 100 index was up 0.4 percent at 6,580.32 points by 1029 GMT, after rising 0.8 percent in the previous session when it snapped a five-day losing streak.

Barclays shares rose 2 percent after the bank, which reported a 12 percent rise in profit, said it intended to accelerate the sale of assets and cost cutting.

"Barclays appears eager to press ahead with the increased pace of restructuring within the group. Most of the key metrics continue to show improvement, with a reduction in operating expenses and impairments being complemented by another robust income showing, leading to a notable hike in adjusted profits," Richard Hunter, head of equities at Hargreaves Lansdown (LSE: HL.L - news) , said.

"In addition, the capital cushion remains comfortable and the return on equity is showing some signs of life."

British American Tobacco was up 2.7 percent after reporting a better-than-expected performance for the second quarter.

On the downside, Compass Group (Other OTC: CMPGF - news) fell 4 percent after the world's biggest catering firm said operating profit this year and next would be hit by restructuring costs.

Mid-cap engineering supply group Premier Farnell (LSE: PFL.L - news) fell 16 percent following comments that it expected a 10 percent decline in first-half adjusted operating profit after sales growth per day in its main markets slowed in the second quarter.

Small-cap Quintain Estates and Development jumped 23.8 percent on news that it is to be bought by U.S. private equity firm Lone Star after receiving a bid valuing the firm at around 700 million pounds ($1.1 billion)..

(Additional reporting by Atul Prakash; Editing by Alison Williams)