Footsie loses ground on back of Woolworths news
Disappointment at the collapse of a proposed bid for Woolworths reflected the mood of the rest of the London market today.
Shares in the high street retailer plunged 30% after private equity firm Apax Partners said it was pulling out of takeover talks.
Although Woolworths is a FTSE 250 stock, one broker said the move would knock top flight companies which are at the centre of private equity interest. The FTSE 100 lost 10.4 points to 4950.4 points by mid-morning with retailer Boots among the heaviest fallers.
Losses across the Atlantic last night took their toll on London. The Dow Jones Industrial Average had dipped 104 points amid lower than expected retail sales figures and overall concern about corporate earnings.
However, falling oil prices lent some support, with the price of a barrel of US light crude remaining around the 50 US dollars mark today.
Miners led the London market lower on the back of lower metals prices, with Antofagasta off 29p to 1196p, BHP Billiton falling 16p to 679.5p Anglo American weakening 15p to 1227p.
Boots was in the red after broker Panmure named it as one of the stocks it would move out of after the move by Apax. The stock, which has been the subject of recent speculation over takeover interest from private equity firms, lost 10p to 637.5p. Woolworths lost 16.25p to 38.75p.
Back in the top flight, Argos owner GUS retreated 10.5p to 903p after saying shoppers had cut back on buying furniture and white goods at the high street catalogue chain as trading conditions worsened.
But Rolls-Royce was the third highest Footsie riser with a 4p gain to 252.25p after saying it expected underlying profits for 2005 to be significantly ahead of market hopes under international financial reporting standards.
Elsewhere, Carphone Warehouse gained half a penny to 163.5p after forecasting annual pre-tax profits at the top end of expectations and a continued strong performance.
