FTSE looses 30 points

A number of takeover developments kept investors on their toes during a solid start to the week for the London market.

While the FTSE 100 Index lost an initial 30 point rise, the top flight still remained 1.5 points higher at 6209.9 by mid-morning.

Resolution, a manager of numerous life funds, led the pack after it told investors that it was in early talks with various parties concerning a wide range of possible transactions, including a possible offer for the company.

Shares rose 4%, or 25p to 660p, as investors pondered the prospect of a tie-up with Prudential – up 2%, or 13.5p, to 651.5p – or Standard Life, which was ahead 2p at 288.5p.

ITV and Scottish Power were again trading higher after well-publicised takeover activity in the past few days.

Broadcaster ITV gained more than 3%, or 3.5p to 114.5p, as weekend speculation put more detail on NTL’s plans for a merger with the top flight company.

It was followed by energy firm Scottish Power as investors continued to position themselves for a bid from Spanish firm Iberdrola. There had been reports that a bid may occur this week, but one report today suggested this was unlikely.

Iberdrola confirmed its interest in Scottish Power at the end of last week although it is thought the two sides have been in talks for two months. Shares in Scottish Power were up 10p to 751p today.

Second tier stock Amec was also in positive territory after two investment groups confirmed their interest in a takeover.

Amec lifted more than 4% or 17.75p to 417.5p as investors gambled on the consortium gaining due diligence access, which has so far been denied.

Elsewhere, it was a bad day for the miners as a string of them sank to the bottom of the blue-chip pile on falling metal prices. Rio Tinto was off 114p to 2766p and Vedanta Resources lost 43p to 1390p.