Late recovery for FTSE

Takeover speculation fuelled shares in the London Stock Exchange (LSE) today as the market staged a late recovery to finish in positive territory.

The FTSE 100 Index had lagged behind in early trading with the ITV takeover under threat, but managed to reach the close 12.5 points stronger at 6204.5.

LSE grabbed the headlines in the City as it rejected a £2.7bn (€4bn) takeover bid from New York rival Nasdaq.

The LSE said the 1243p-a-share offer "substantially undervalues the company" just hours after Nasdaq lodged its bid.

It is the second time the LSE has rejected an offer from Nasdaq this year, following a £2.4bn (€3.5bn) bid in March.

Shares jumped after the bid and still finished the day on a high despite confirmation that the offer had been dumped. The stock was up 73p - 6% - at 1291p by the close as investors kept their fingers crossed that Nasdaq would up the ante.

Meanwhile, shares in ITV and BSkyB were on the slide after BSkyB secured a 17.9% stake in its struggling rival broadcaster.

The move was seen as a potential blow to a takeover of ITV by NTL and shares in the station fell 1.25p to 114.5p. BSkyB, meanwhile, was off 4p to 533p as Sir Richard Branson, NTL's largest shareholder, called on the Office of Fair Trading to intervene and force BSkyB to sell its stake.

Developments at Corus were more favourably received by the market and its shares continued to gain strength as analysts speculated on the entry of Severstal into a bid saga already involving Tata and Brazil's CSN. Corus shares lifted 6.5p to 502p.

A string of bankers dipped into the red with Lloyds TSB down 2.5p to 565.5p, Royal Bank of Scotland 11p lower at 1893p and HSBC off 4p at 987p.

But it was a more positive session for the miners, with Antofagasta up 18.75p to 476.5p, Lonmin 50p higher at 2980p and Xstrata up 41p to 2195p. The heavyweight stocks attracted attention as investors pondered the chance of consolidation in the industry.

Outside the top flight, a profits warning from logistics group Christian Salvesen caused its shares to drop 6.5p to 68.75p, or 9%.

Shares in Johnson Service Group dipped 8% after news the firm was keeping hold of its dry cleaning arm, despite receiving a number of bids for the business.

The stock was down 35.5p at 393p, even though Johnson said trading had improved at its chain of dry cleaning outlets.

Meanwhile, pub group Greene King was on the slide by 14p to 1028.5p after agreeing to sell 155 sites to Admiral Taverns in a deal worth £56m (€82.9m).

The day's biggest blue-chip risers were Antofagasta up 18.75p at 476.5p, Hammerson up 39p at 1484p, British Land 42p at 1604p and Rio Tinto up 63p at 2732p.

The day's biggest blue-chip fallers were Unilever down 21p at 1380p, ITV down 1.25p at 114.5p, Smiths down 9p at 912.5p and Bradford & Bingley down 4.25p at 458.5p.