BT windfall fails FTSE

A £2.5 billion windfall for BT shareholders failed to keep the telecoms company off the FTSE 100 Index fallers board today.

BT appeared to succumb to profit-taking as shares were 2% lower, despite a 27% rise in its dividend and a promise to buy back £2.5 billion of its shares over the next two years. The stock was down 6.5p at 308.75p.

The wider London market was in positive territory, with a strong finish in New York helping the FTSE 100 Index to rise 15.5 points to 6575 by mid-morning.

Rising oil prices ahead of the peak summer driving season in the United States meant Royal Dutch Shell rose 29p to 1822p and BP gained 6p to 563p.

One of the biggest moves northward came from British Airways as Goldman Sachs issued an upbeat note ahead of full-year results from the airline tomorrow. Shares were 13p higher at 503p.

BA was tracked by credit checking business Experian, which gained after a fresh round of takeover speculation. Shares were up 14.5p at 590.5p.

Elsewhere, ITV was 1.2p lower at 118.8p after revealing a 9.6% fall in advertising revenues for ITV1 during the first six months of the year. This was offset by signs that the overall market was stabilising.

InterContinental Hotels shares were trading 1% lower after rumours yesterday that it may be a bid target began to fade. The stock was 16p lower at 1356p.

The biggest riser in the FTSE 250 Index was Emap after the media group announced the departure of its chief executive Tom Moloney. Analysts welcomed the move as the FHM and Grazia publisher jumped 5%, or 46.5p to 884p.

It was joined on the risers board by home shopping and educational supplies business Findel, which cheered investors with full-year results and an upbeat outlook statement. Shares were 7% higher, 47.5p to 709.5p.