UK blue chips extended gains in midday trade, touching new three-year highs, with strong gains in ITV on bid hopes and as crude strength sent shares in the oil sector higher, said dealers. By 12.00 noon, the FTSE 100 index was 16.5 points firmer at 5,177.5, while the broader FTSE indices were mixed, with losses for the FTSE 250, dragged down by losses for Travis Perkins following a cautious trading update. Volume was thin, with 683.9 mln shares changing hands in 76,625 deals, and is expected to tail off later in the day as Wall Street will be closed for Independence Day today. In London, all eyes were on ITV, up over 3.5 pct or 4-1/2 pence. In response, UBS reiterated its 'buy' advice and said it continues to see ITV as a "key opportunity". UBS added whilst there has been speculation that leveraged buy-out (LBO) buyers were considering a bid, there were doubts over whether private equity could raise sufficient funding. However, a joint bid with a trade buyer could help to resolve this issue and might provide a potential exit route for a financial buyer, it said. Some traders remained sceptical of any deal, however. One London-based trader said: "I think it's just a lot of noise - this story has been around before and nothing happened then, so why now? Also, Greg Dyke, who works at Apax, is hardly on best terms with UK government these days."