FTSE falls as telecom shares fare badly

Telecoms giant Cable & Wireless led the FTSE 100 Index to a negative close today as investors failed to warm to its takeover of Energis.

The stock was the heaviest top flight faller – retreating 4% or 6.75p to 156.25p – after announcing details of the deal.

This contributed to the Footsie weakening 21.9 points to 5322.3 as it struggled to hold on to the momentum of the past few weeks.

The top flight has gone into reverse in recent days after previously hitting a series of three-and-a-half year highs.

Shares across the Atlantic were also in negative territory today, with the Dow Jones Industrial Average standing around 70 points lower by the end of trading in London.

In London, mobile phone operator O2 contributed to the downbeat mood after German rival Deutsche Telekom and Dutch group KPN announced they had no current plans to launch a takeover bid.

Shares in O2 slipped 3.75p to 142.75p to take it further away from the all-time high set at the end of last week.

The highest Footsie risers today were Royal & Sun Alliance up 3.75p to 96.5p, Daily Mail & General Trust adding 16p to 671.5p, Kingfisher up 5.25p to 255.5p and ITV rising 2.25p to 117.75p.

The heaviest fallers were Cable & Wireless off 6.75p to 156.25p, Xstrata down 50p to 1302p, Antofagasta losing 44p to 1429p and BHP Billiton down 23p to 837p.