FTSE down as banks, media stocks drag

Takeover interest for retailers Debenhams and Selfridges provided boost for the British share market today as weakness among …

Takeover interest for retailers Debenhams and Selfridges provided boost for the British share market today as weakness among media and banking stocks depressed the broader market.

Debenhams leapt 24 per cent after the department store chain said it had received a £1.5 billion bid approach; Selfridges jumped 12 per cent after agreeing to a £600 million takeover, which drew out the possibility of a counter-bid.

Mining group Lonmin also joined in the midcap rally with a 9 per cent gain on speculation of a bid, although the gain was trimmed when one of its most likely suitors denied it was interested.

But blue chips failed to reap the benefit, and at 1350 GMT the FTSE 100 share index was down 18.7 points, or 0.5 per cent, at 3,950.7, after failing to build on an early advance toward the 4,000 barrier. The midcap FTSE 250 index was up 0.6 per cent at 4,549 points.

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Media stocks were a drag for the second successive day amid worries about sluggish advertising spending. Broadcasters Granada and Carlton fell 3.3 per cent and 5 per cent respectively, on fears that the passage of legislation key to their proposed merger had run into trouble.

In contrast, almost all retailers benefited from the takeover interest in the sector, with blue chips Dixons, GUS and Kingfisher all up over 2 per cent.