FTSE falls

Fresh takeover talk in the retail sector lifted B&Q owner Kingfisher by more than 2% today, while Alliance Boots was also on the up following developments in its buyout saga.

But the recent round of takeover activity was not enough to hold the London market in the black, with the FTSE 100 Index falling 19.7 points to 6304.5 by mid-morning.

Investors were exercising caution ahead of the latest US economic data due out later in the session which is widely expected to show a slowdown in consumer spending, compounding concerns for the US economy.

Kingfisher was 6p higher at 276.5p amid reports that Goldman Sachs could be interested in making a bid for the group.

And Alliance Boots rose 6p to 1033p after the firm agreed to open its books following an improved £10bn offer from its deputy chairman Stefano Pessina and private equity firm Kohlberg Kravis Roberts.

Meanwhile, the end of preliminary talks over a possible offer for life insurance group Resolution saw its shares slump by more than 5%, or 34p to 613.5p.

Telecoms giant Vodafone joined the stock at the top of the fallers’ board with a loss of 4.5p to 137.1p after the group’s latest guidance on earnings in UK left investors disappointed as it warned of continued challenging conditions in the UK and German markets.

Meanwhile, a broker downgrade from ABN Amro following the Open Skies agreement to open up access at Heathrow saw British Airways fall 8p to 490p.

Brewer Scottish & Newcastle lost hold of early gains after bid rumours circling the stock began to fade. The stock was up 1p at 596p.

Elsewhere, Rentokil Initial gained more than 2% after it unveiled a better than expected £595m price for its electronic security arm. Shares rose 4.25p to 163p.