FTSE gains slightly

Sainsbury's shares fell 3% today as confidence in the private equity consortium's £10bn (€14.67bn) takeover push faded among investors.

The supermarket chain led the fallers' board during an otherwise quiet morning for the London market following the Easter break, with the FTSE 100 Index up 18.8 points at 6416.1 by 11.15am.

The market talk was that a second member of the private equity consortium - Texas Pacific - had withdrawn from the potential bid, driving the shares lower.

Doubts over the move had already grown over the weekend with the Sainsbury's family reportedly looking for a 600p a share offer - expected to be out of reach for the bid consortium.

The private equity group reportedly increased its offer by 20p a share to 582p a share, but this was not enough to prevent pessimistic investors from driving the company's price down 18p to 543.p.

Other supermarket chains were also dragged lower this morning. Morrisons was off 3.5p at 315.25p while Marks & Spencer was 5.5p lower at 685p.

Imperial Tobacco was another faller after it failed to win over bid target Altadis with an improved offer worth £8bn (€11.75bn).

The stock was 15p lower at one stage but recovered slightly to stand 4p down at 2259p at mid-morning. The blow to consolidation prospects also caused shares in British American Tobacco to dip 5p to 1591p.

Mining stocks accounted for three of the top five risers as high copper prices lifted the firms.

Kazakhmys led the Footsie leaders board - ahead nearly 4%, or 44p, at 1244p. It was joined at the top by Rio Tinto, up 50p at 3095p, and BHP Billiton ahead 18p at 1117p.

Vodafone was also 1.6p higher at 138.3p, following a broker upgrade from Bear Stearns, which took a positive view of the company's growth strategy.

British Energy led the second tier, with shares rising 17.75p to 505.75p, reflecting better-than-expected output numbers from the nuclear power generator.