FTSE dips despite Diageo gains after takeover reports - London Report

TAKEOVER speculation sent some FTSE shares higher but overall the UK’s top index was offset by poorer performances elsewhere in the market yesterday. It finished near the previous session’s two-week low

The blue-chip FTSE 100 index closed 0.2 per cent lower at 6,790.04 points after falling to a two-month low in the previous session.

Diageo jumped 6.8 per cent on reports Brazilian billionaire Jorge Paulo Lemann and his partners in private equity firm 3G Capital are considering a bid for the company.

However, Diageo’s gains were eclipsed by some weaker firms. Shire fell 2.8 per cent after a Sunday Times report suggesting the pharmaceutical company was considering a £12bn takeover of Actelion, Europe’s biggest biotech firm.

Engineering firm GKN fell 2.5 per cent, with traders citing a report which indicated that aerospace giant Airbus was looking to renegotiate with its suppliers to cut costs.

British grocers also fell, with Morrisons down as much as 1.8 per cent before closing 0.5 per cent lower as it announced price cuts yesterday. Meanwhile, Tesco shares fell 1.1 per cent.

Related articles