City gloom despite Bank of Ireland move on Abbey

ABBEY NATIONAL failed to lift the cloud hanging over the City yesterday, despite gaining nearly 6% after it emerged that Bank of Ireland had made an informal merger approach.

Shares in the former building society rose 30p to 535.5p as investors speculated on the merits of a tie.

Nevertheless, continued gloom over the health of the global economy and concern about tension in the Middle East pushed the FTSE 100 Index back below the 3800 barrier in a subdued start to the week.