THE widespread enthusiasm that gripped London's equity market on Tuesday afternoon reappeared briefly yesterday but evaporated only minutes after the market opened.

The session promised much but eventually delivered precious little. Dealers ascribed the market's disappointing performance to persistent worries about a potential substantial fund raising operation.

The market's leading candidates to launch a big rights issue included BBA which confirmed recent market rumours that it intended bidding for Lucas, the motor components group and Prudential, the insurance company.

The Woolwich Building Society and the Alliance & Leicester Building Society were both being put forward as possible takeover targets for the Pru, with dealers taking the view that the purchase of either would mean the Pru needing to raise upwards of £1 billion sterling.

The market's hunger for more bid action was satisfied by news that BBA aimed to launch a bid for Lucas, already in the throes of merging with Varity, of the US. There was more takeover news

Blenheim, the exhibitions company, said it had received an approach from an unnamed suitor and an increased offer for Allders' duty free shops from BAA was almost instantly topped by Swissair.

Hints of fresh bid action kept the composite insurers at the forefront of the Footsie performance league. A share buy back by PowerGen, involving the purchase of some 35 million shares, saw some of the market's big institutions switching the proceeds into National Power.

The latest move by Offer, the electricity industry watchdog, proposing a 3 to 5 per cent cut in prices charged by the Scottish generators upset Scottish Power and Scottish Hydro. However, a bid from the US could be on they way for Scottish Power.

Turnover in equities at 6 p.m. was 842.9 million shares. Customer activity on Tuesday was worth £1.95 billion.