Possible takeover talk boosts ITV shares

ITV shares jumped by more than 9% today as traders continued to speculate over the possibility of a takeover approach from Dutch firm Endemol.

The stock lifted 4.3p to 51.9p by mid-morning, making the broadcaster the London market’s biggest gainer by some distance.

The FTSE 100 Index took more gloomy inflation figures in its stride, with the top flight just 3.7 points lower at 5538.1. It had been more than 40 points lower ahead of the figures, which showed CPI inflation surged to 4.4%.

Retailers were under pressure as disappointing industry sales figures for July highlighted the severity of the sector’s downturn.

Marks & Spencer, Next and B&Q-owner Kingfisher were among those suffering after the British Retail Consortium said July sales fell 0.9% year-on-year, despite the dire trading seen amid last year’s turbulent weather.

M&S shed 2%, or 6p to 298p, while Next was down 31p at 1101p amid fears today’s latest inflation figures increased the chances of a rise in interest rates. Kingfisher slipped 2.7p to 138.8p.

Supermarkets proved more resilient, with Tesco down by just 0.1p at 394p after announcing its Indian debut with a wholesale cash-and-carry venture.

Holiday Inn firm InterContinental Hotels was also making gains, up 3%, or 20.5p at 771p after half-year figures showed a 21% hike in earnings, although it said growth was slowing.

In the second tier, the rally seen among housebuilders showed signs of petering out, with Taylor Wimpey losing an initial 9% gain to stand 2% higher, ahead 1.25p at 59.75p.

Barratt Developments fell 0.75p to 157.5p as it lost some of the rebound seen after news of private equity stake-building in the group.

Food companies topped the FTSE 250 Index risers board, with Northern Foods up 9%, or 5.25p to 66.25p, while Domino’s Pizza was ahead 12.5p to 202.25p.