FTSE slips slightly
The London market slipped into the red today despite a 9% surge in Scottish Power shares after the energy supplier gave details of an approach from an unnamed suitor.
Rumours of a bid circulated the City throughout early trading and interest in the shares intensified when the firm confirmed it was a takeover target.
The excitement sent energy stocks sector higher, but it was not enough to stop the FTSE 100 Index falling five points lower to close at 6239.
Scottish Power, which rejected an approach from Powergen owner E.ON last year, lifted 58.5p to 730p as investors piled money into the sector.
The rise helped value the company at £11bn (€16.4bn) and was followed by strong gains for rivals Scottish & Southern Energy, up 64p to 1410p, International Power, 10p higher at 344.25p, and British Energy Group, which gained 20.5p to 469.5p.
Also on the front foot was Dixons owner DSG International, which rose 2% or 4p to 218p, after Citigroup raised its price target ahead of sales figures later this month.
Marks & Spencer was still in the spotlight following yesterday's sparkling results. A string of upgrades from City brokers pushed its shares 9.5p higher to 707.5p.
Much of the rest of the market was under pressure after Democrats seized control of the US House of Representatives, which hammered world markets lower.
Analysts pointed out that the change in House leadership would be considered negative for stocks as it would likely result in a less business-friendly environment.
Miners were among those under pressure, with Anglo American down 52p at 2454p and BHP Billiton off 13p at 1047p.
A number of stocks going ex-dividend, meaning investors lost the right to the most recent payout, added to the weakness in the top flight. Among them was Unilever, which slipped 18p to 1384p.
Insurer Standard Life fell 0.75p to 292.25p despite reporting a 26% jump in sales following a record month for one of its key products. Chief executive Sandy Crombie said the number of policies lapsing remained above the long-term trend.
Telecoms firm Cable & Wireless provided some upside in the second flight with a rise of 4%, or 5.5p to 156.5p, following positive half-year results.
Cable said UK underlying earnings grew by 14% to a better than expected £73m (€108.9m) in the six months to the end of September, putting it on course for full-year earnings of between £145m (€216.4m) and £150m (€223.8m).
Meanwhile, shares in bluetooth chip maker CSR fell 17%, or 135p to 645p, after it downgraded its sales expectations again, prompted by a drop in demand for top-of-the-range mobile phones.
The day's biggest blue-chip risers were Scottish Power up 58.5p to 730p, Scottish & Southern Energy up 64p to 1410p, British Energy up 20.5p to 469.5 and International Power up 10p to 344.25p.
The day's biggest blue-chip fallers were Icap down 15p to 513p, Anglo American off 52p to 2454p, AstraZeneca down 64p to 3162p and Legal & General off 2.5p to 148.75p.
