Footsie continues to fall

Telecoms giant Cable & Wireless led the FTSE 100 Index lower today as investors gave a lukewarm reception to its acquisition of Energis.

The deal worth an initial £594 million made the stock the heaviest blue-chip faller, off 5% or 8.75p to 154.25p by mid-morning.

This contributed to the Footsie weakening 2.2 points to 5342 as it struggled to hold on to the momentum of the last few weeks. The top flight has gone into reverse in recent days after previously hitting a series of three-and-a-half year highs.

Mobile phone operator O2 followed C&W lower after German rival Deutsche Telekom announced it had no current plans to launch a takeover bid.

Shares in O2 were 2% or 3.5p lower at 143p as it retreated further from the all-time high set at the end of last week.

Schroders – one of the UK’s oldest fund management firms – was also in the red despite lifting half-year profits by 70% after achieving more higher margin business. One broker described the results as “solid” and raised its price target on the stock, but this failed to prevent shares slipping 22.5p to 872.5p.

Among the companies making headway today were More Than insurer Royal & Sun Alliance, ahead by 4.25p at 97p as Goldman Sachs issued an upbeat note, and Royal Bank of Scotland – up 9p at 1618p.

Elsewhere, book seller Ottakar’s cheered 16% or 45p to 326p after entering talks over a management buyout. The group said private equity investors were backing moves by executives, including managing director James Heneage and chairman Philip Dunne, to take control.

And floor coverings group Carpetright added 8p to 933p as it reported a steep fall in sales but said it was coping with tough trading conditions better than its rivals.