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    June 16, 2006

    Bids talk in utilities sector

    Filed under: Companies, Rio Tinto, BHP Billiton, Daily Mail, Marks & Spencer, Scottish & Southern Energy, Cable and Wireless, Wm Morrison, Scottish Power, Ladbrokes

    London equities markets were lower again on Friday. After gains early in the day, the FTSE 100 ended up 21.9 points lower at 5,597.4 as miners lost value on China’s steps to slow down economic growth. Meanwhile, the FTSE 250 dropped 8 points to end the day at 9,093.8. Over the week, the 100 lost 1 percent, while the 250 actually managed to gain 0.8 percent.

    The 100 will lose three stocks beginning Monday, and all three were lower. Ladbrokes dropped 3.4 percent to 372¼p, while Daily Mail and General lost 2p to 600 and Cable & Wireless fell ½p to 109½p.

    In the utilities sector, Scottish Power added 3.9 percent to 577½p for the largest gain on the 100. Most analysts put the gain to a positive evaluation of its PPM Energy division, which is the second biggest wind farm operator in the United States. Others said that it was helped by bid talk, as rumor had it that Scottish & Southern Energy is preparing an offer. Scottish & Southern added 0.2 percent to £11.13.

    Retailer Marks & Spencer was up 3.3 percent to 573p on a “buy” recommendation from Deutsche Bank after having lost 13 percent in the past month. Also in retail, supermarket chain William Morrison added 2.4 percent to 199¼p and 50 million shares changed hands as bid rumors circulated.

    In the mining sector, Rio Tinto dropped 1 percent to £27.17, while BHP Billiton declined by 2.2 percent to 960p.





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