A SUDDEN resurgence of rumours of a FTSE 100 bid transformed the turning a deficit of more than 20 points shortly before the close into a small net gain in the premier index.
The speculation was focused primarily on BT and Cable & Wireless, which saw their share prices surge ahead in exceptionally heavy trading, but also encompassed other recent takeover favourites. These included
Ladbroke, where the shares have risen strongly in recent months amid constant speculation that a bid from Bass, Scottish & Newcastle or Hilton Hotels International was imminent.
And there was also a burst of late buying interest in the financial areas of the market. Legal & General was said to have attracted the attentions of an overseas predator and was also said to be about to merge with General Accident, the composite insurance group. Earlier in the day, Refuge Assurance rose sharply amid talk that a number of US arbitrators had chased the shares ahead of a takeover bid.
At the close of trading the FTSE 100 index was left showing a 0.2 gain at 3672.6; market makers said the index would have been showing a 10 to 15 point gain if trading had continued for another 10 minutes. The gains in BT and Cable & Wireless accounted for just short of 10 Footsie points.
The FTSE Mid-250, meanwhile, was never under any sort of downside pressure, and was propelled to yet another new record, up 3.7 at 4309.4, on the back of a spate of good trading results.
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