Slight gain for FTSE

The London market edged into positive territory today as takeover speculation gave blue-chips a late lift.

The FTSE 100 Index spent most of the session in negative territory, but recovered to finish the day a modest 5.1 points higher at 6570.5.

Reports that mining firm BHP Billiton was on the lookout for acquisitions sent smaller rival Rio Tinto to the top of the Footsie risers board - up more than 4%, or 145p at 3675p - as consolidation talk continued to surround the sector.

And broadcaster ITV gained 4.5p to 119.1p on speculation that BSkyB could exchange its 17.9% stake in the channel for German rival RTL's Five, clearing the way for an RTL bid for ITV.

The late excitement masked a sluggish day for the market ahead of the bank holiday break with property and pubs firms on the back foot during a disappointing end to the week for investors.

Real estate investment trust Land Securities topped the fallers board, down 35p to 1858p after a broker downgrade from JP Morgan.

The note knocked a number of stocks in the construction-related sector, with housebuilder Persimmon down 21p to 1346p, Segro - the new name for Slough Estates - losing 8.5p to 717p and Hammerson off 18p at 1574p.

Pubs group Mitchells & Butlers was another heavy loser after smaller bars chain Regent Inns said it would miss profits forecasts following a disappointing April. Mitchells shares were 10.5p lower at 864.5p, a drop of 1%.

Among the small caps Regent dived more than 15% or 16.75p to 91p - even though the company insisted its medium-term prospects appeared sound. JD Wetherspoon was down 16.5p at 615p.

The concern about consumer confidence was also reflected in shares of Marston's, even though the pubs chain and brewer delivered a bullish trading update ahead of the smoking ban due to come into force in England in July. Shares fell 10.75p to 455p.

Elsewhere in the FTSE 250 Index Woolworths jumped by almost 2% after its CDs and DVDs wholesale subsidiary won a contract to supply products to Asda. The stock, which has been impacted by trading difficulties on the retail side of the business, rose 0.75p to 28.5p.

Meanwhile, motor insurance firm Admiral gained 16p to 994p, a rise of almost 2%, after it confirmed it was considering its options regarding its price comparison website Confused.com. The review came as it received a number of approaches for the business.

Shares in construction company Kier fell more than 3% after it said the Office of Fair Trading had been in contact about a subsidiary's conduct in respect of 20 tenders submitted between 2000 and 2005. The OFT has been carrying out a review into tender activity in the construction sector since 2004. Kier shares were down 91p at 2254p.

Back in the top flight, the financial sector was in favour as investors prepared for the next twist in the ABN Amro takeover saga. Royal Bank of Scotland, which will provide an update on its intentions on Tuesday, was up 6.5p at 641.2p, while ABN's bid partner Barclays gained 7p at 720p.

The biggest Footsie risers were Rio Tinto ahead 145p at 3675p, ITV up 4.5p at 119.1p, Experian ahead 17.5p at 628p and Kelda up 23p at 1000p.

The biggest Footsie fallers were Land Securities down 35p at 1858p, Persimmon down 21p at 1346p, Compass off 5.75p at 374.5p and Home Retail Group down 7p at 465.25p.