FTSE slips into red

The London market slipped into the red today despite bid activity surrounding broadcaster ITV and a number of mid-cap stocks.

Shares in ITV continued to move forward as the private equity consortium stalking the broadcaster prepared a possible second bid.

There was also interest in Babcock International and AB Ports in the second tier but it was not enough to offset losses across the financial sector which dragged the FTSE 100 Index 24.6 points lower to 6011.7 by mid-morning.

Apax Partners, the Blackstone Group and the investment arm of Goldman Sachs were understood to be working on a new offer for ITV, which for the first time will include a cash alternative. Shares were up 1% or a penny to 128.75p. Elsewhere in the media sector, BSkyB was 4.5p higher at 547.5p.

Babcock and AB Ports both gained more than 3% in the FTSE 250 Index as takeover talk gathered pace.

Shares in Babcock were up 11p to 326.5p as investors continued to bank on a bidding war following an approach last week from VT Group and BAE Systems.

AB Ports – Britain’s biggest ports operator – jumped 22p to 718p after it became a £2.3bn (€2.85bn) bid target of a consortium featuring Goldman Sachs.

Back in the top flight, a string of finance stocks slipped into the red to drag the Footsie back from its recent highs.

Banking firm Alliance & Leicester was 2% lower down 19p to 1139p, while Royal Bank of Scotland was off 10p to 1857p and Barclays lost 3p to 681p.

Insurers were also in retreat, with Legal & General 0.75p lower at 145p and Royal & Sun Alliance off 0.75p to 142.75p.

Oil giant BP was also weighing on the market – down 5p to 663.5p – although rival Royal Dutch Shell managed to avoid the sell off as it stood unchanged at 1840p.