Slight drop for FTSE in morning trading
Takeover talk in the property sector helped stem losses on the London market as investors exercised caution ahead of the interest rate decision.
Speculation of a private equity bid for Hammerson sent the group's shares soaring by 8%, or 121p, to 1689p, putting fellow blue-chip property companies firmly on the front foot as a result.
The takeover rumours saw the FTSE 100 Index climb from a drop of nearly 20 points in the first hour of trading to sit 8.2 points down at 6541.4 by mid-morning.
British Land and Land Securities both benefited from the bid reports, up 32p at 1508p and 43p at 2023p respectively, while a raft of other property firms made it on to the risers' board.
Liberty International was up 21p at 1251p.
Private equity group 3i also made advances with shares up 2%, or 19p, at 1188p after the group posted a strong set of results.
Analysts said the group's prospects for expansion into new sectors and growth areas were good as the strategy put in place by the new management team continues to deliver.
Meanwhile, scepticism over a possible takeover of mining giant Rio Tinto saw the group lead the Footsie fallers, with other miners not far behind.
Rio Tinto shares retreated 88p to 3572p after the 11% rise seen yesterday as doubts were cast over the likelihood of a bid from BHP Billiton succeeding amid expectations of regulatory hurdles.
BHP Billiton shares fell 26p, or 2%, to 1223p as the takeover talk cooled.
Antofagasta was also down 10p to 553p.
In the second tier, Babcock shares rose 7%, or 35.75p, to 513.25p following news it is to buy Plymouth's Devonport naval dockyard for £350m (€513.93m), a deal set to make it the UK's leading naval maintenance firm.
