Among the fallers in a downbeat FTSE 100, Imperial Tobacco has lost ground on fading bid hopes.
The cigarette group has long been tipped as a takeover target, with Japan Tobacco suggested as one possible predator. But the Japanese group has just agreed to pay $5bn to Reynolds American for the international rights to the Natural American Spirit brand, which traders said made a move on Imperial less likely. Whatever the reasoning, Imperial’s shares are currently down 103p at £33.37.
Elsewhere chip designer Arm is 35p lower at 905p after analysts at Natixis cut their rating from buy to neutral and their price target from £12.50 to £10. They were cautious because of slowing growth in mobile phone markets and said Arm’s research investment could hit margins.
