Takeover talk fails to boost FTSE

A day of frenzied takeover speculation failed to spark the London market as falling metal prices took their toll on the big mining stocks.

Individual shares in the mining sector were off by as much as 5% following a decline in copper and oil prices.

The FTSE 100 Index had managed to open in positive territory, but stood 14.2 points lower at 6194.2 by the end of the session.

Among the miners, Antofagasta fell 26.5p to 468.25p, Vedanta Resources dipped 66p to 1367p and Kazakhmys tumbled 60p to 1140p, while Rio Tinto weakened by 115p to 2765p,

The top seven blue-chip fallers were all from the sector, while oil pair Cairn Energy and BP were also down by 56p and 8p to 1907p and 590p respectively as the price of crude also slipped.

Movements were just as marked on the risers board, following a rash of takeover speculation involving a number of companies.

Resolution, a manager of numerous closed life funds, headed the leaderboard 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 5%, or 32.5p to 667.5p, 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 by 1p at 287.5p.

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 3.25p to 114.25p, as weekend speculation put more detail on NTL's plans for a merger with the top flight company. Scottish Power was also ahead 2.5p to 743.5p 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 a report suggested this was unlikely - causing shares to give back some of the strength gained earlier in the session.