Footsie makes bright start

Cable & Wireless ensured the Footsie made positive strides today as investors warmed to reports of merger talks with rival telecoms firm Energis.

Shares in C&W lifted 3% or 4.5p to 148.5p to move within a whisker of its highest mark for more than a year as speculation took off about a possible deal.

Sentiment was also boosted by an upbeat performance in New York last week as the FTSE 100 Index added 8.4 points to stand at 5239.2 by mid-morning.

Investors across the Atlantic had responded with enthusiasm to earnings reports by major players such as Apple and General Motors.

Progress by C&W in London was accompanied by gains for consumer goods group Unilever – up 8.5p to 560.5p – and banking giant HSBC which was 8p stronger at 922.5p.

It helped cushion the negative reaction to announcements from the likes of retailer Marks & Spencer and building materials specialist Wolseley.

M&S was the third-heaviest top-flight faller after confirming that executive director Charles Wilson – a key lieutenant of boss Stuart Rose – was quitting to join cash-and-carry chain Booker. Shares weakened almost 2% or 6p to 359.75p.

It trailed ITV on the fallers board after reports said a consortium involving private equity group Apax Partners were no longer interested in bidding for the broadcaster because of the size of its pension fund deficit. ITV shares dropped 3p to 122.75p.

Build Center owner Wolseley also took a hit – down 20p to 1173p – after saying its UK division had shown good growth but at a slower pace in recent months.

However, oil stocks were firmer despite the cost of a barrel of crude oil in New York rising back up towards 59 US dollars. Shell was 0.75p higher at 541.75p and BP ticked up 4.5p to 623p.