London Report: Strong Arm gains and IHG takeover rumours lift FTSE

THE UK’S main equity index climbed yesterday, lifted by gains in chip designer Arm and InterContinental Hotels Group (IHG), which pushed the market back to within reach of its record high.

The blue-chip FTSE 100 index closed up 29.19 points, or 0.4 per cent, at 6,844.94 points.

Arm was the best-performing FTSE stock in percentage terms, rising four per cent to 917p. Traders attributed the move to Numis Securities increasing its price target to 920p from 880p, after an upbeat presentation from the company at a briefing for investors.

IHG rose 3.4 per cent after Sky News reported it had rejected a £6bn takeover offer from a US bidder. A spokeswoman for IHG declined to comment on the report.

Drugmaker Astrazeneca fell another 1.8 per cent after Pfizer on Monday – when London markets were closed for a public holiday – formally walked away from making a bid, having said last week it would not raise its terms to meet what management of the mooted target had demanded.