FTSE in the red
A proposed link-up between NTL and Virgin Mobile put other broadcasters under pressure today as the FTSE 100 Index fell into the red.
BSkyB and ITV led the sell-off in London this morning as investors transferred their interest to Virgin Mobile.
BT was also feeling the heat while the rest of the market was in subdued form, sending the Footsie 22.6 points lower to 5505.5 at mid-morning.
BSkyB topped the blue chip fallers’ board down 14.5p to 490.5p after rival NTL confirmed it was in talks to buy Virgin Mobile for more than £800m (€1.2bn).
With the potential deal set to use the Virgin brand across internet, television and telecoms services, ITV investors also took fright at the increased competition, falling 2.25p to 108p, while BT fell 3.75p to 210.5p.
Mobile phone giant Vodafone was also down 1.5p to 121.5p, but the news of the offer from US-listed NTL sent Virgin Mobile shares soaring 7% in the second-tier, up 22p to 333p.
Elsewhere in the FTSE 250 Index, car dealership Pendragon rose 34p to 524p, a jump of more than 6% after sealing a deal to buy rival Reg Vardy at the weekend. Vardy’s share value has shot ahead in recent sessions and it moved up a further 4p today to an all-time high of 798p.
The market also welcomed full-year profits figures from Aberdeen Asset Management as shares rose 3% or 2.75p to 135.25p.
But P&O shares were on the slide – off 26p to 468p – after reports said it was unlikely to draw a rival takeover approach to the £3.3bn (€4.8bn) offer from Dubai Ports World.
Back in the top flight, shares in Next were up 24p to 1458p after the recent cold snap was said to have boosted clothing sales.
Tate & Lyle was also in good shape, up 6.75p to 583.25p, as investors welcomed news that it had agreed to buy two smaller food producers in the US and Italy.
