Bid speculation fever boosts FTSE

Renewed bid speculation involving a top flight stock helped the FTSE 100 Index nudge closer to its highest level in more than three years today.

With US markets closing ahead on Friday and the Nikkei considerably stronger in the wake of the Japanese elections, the Footsie had every reason to push ahead – up 11.5 points at 5370.8 by mid-morning.

It is now within 10 points of the intra-day high for the year, which would also represent the highest level for in excess of three years.

Scottish Power led the Footsie pack as investors speculated about the price that Powergen owner E.ON may offer for the utility following its disclosure last week that it was interested in the Glasgow-based utility.

Shares advanced 16p to 571.5p, a rise of almost 3%.

The market was also given momentum by BP as the oil major outflanked rival Royal Dutch Shell with a gain of 6p to 644.5p.

Elsewhere, advertising giant WPP was amongst those on the front foot as it benefited from a positive note from Morgan Stanley, lifting the stock more than 1% or 8p to 581.5p.

Associated British Foods failed to hold on to positive territory, even though a spectacular sales performance from its Primark retail arm kept ABF on course to meet full-year results expectations. Shares were a penny lower at 844p.

Outside the top flight, Bovis Homes led a clutch of housebuilders lower in the wake of a sharp fall in half-year profits.

With the results affected by a downturn in completions and average selling prices, Bovis added to the concerns with cautious comments about prospects for the market.

Shares fell 15p to 602p and were followed lower by rival Westbury, down 6.25p to 444.25p, and Persimmon off 6.5p at 826.5p.