Rolls-Royce drop on FTSE, as Eurozone fears have negative impact

Rolls-Royce shares were 2% lower today as investors faced up to more details of the bribery claims relating to contracts in Indonesia.

The engines giant disclosed last week that it was in talks with the Serious Fraud Office in relation to concerns about bribery and corruption in Asia, prompting its shares to fall 3% at one stage.

As it emerged that the company’s former chief service representative had raised his concerns on local newspaper and industry news internet sites since 2006, shares in the blue-chip company fell 15.25p to 881.25p.

The FTSE 100 Index was 12.1 points lower at 5902.1, despite Sunday’s boost from better-than-expected factory output figures in China.

There were more concerns over the eurozone after Italian Prime Minister Mario Monti’s announcement that he intends to resign by the end of the year.

Financial stocks were unsettled by the developments, with pan-European insurer Aviva off 6.5p to 359.75p and Royal Bank of Scotland down 2.55p to 296.45p.

Outside the top flight, shares in bakery chain Greggs were off nearly 3% – down 13.9p to 472.6p – after well-respected chief executive Ken McMeikan announced he was leaving the group to join catering company Brakes.

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