Reckitt Benckiser, the Cillit Bang and Dettol group, is leading the FTSE 100 risers following reports it may be caught up in the latest round of merger fever.
It has long been tipped as a predator for Durex maker SSL International, up 18p at 684.5p today. But other suggestions included a merger with US group Colgate Palmolive, which released a standard "no comment on market rumours" statement after a near 4% rise in its share price. Meanwhile Reckitt is currently 81p higher at £31.86.
Commenting on SSL, analysts at FinnCap said:
At the time of the first half trading update, sales were behind estimates but the bid premium supported the share price. To be in-line with the Personal Care sector at 16 times earnings, SSL's share price should be nearer 515p. If Reckitt bids for anyone other than SSL, and the bid premium goes away, sell.
Elsewhere miners are dragging the leading index lower. With nine out of the ten big fallers from the sector - the FTSE 100 is down 16.45 points lower at 5325.68. Some of the shine has come off metal prices following their recent rises, as a stronger dollar gave investors a chance to cash in some of their gains. So Antofagasta is down 36p at 905p while Rio Tinto has slipped 96.5p to 3213.5p. However Citigroup said that there could be more to go for with Rio, especially if its iron ore joint venture with BHP Billiton falls by the wayside, prompting BHP to make another full bid for its rival. Citi said:
We continue to see risks to the iron ore joint venture from pressure for Rio to renegotiate terms given it is selling down the highest growth/return asset, regulatory hurdles and shareholder approval. No other acquisition offers BHP the same synergies and asset quality as Rio, so we do not rule out another bid, although EC remedies and concentration of market cap are key challenges.
The non-mining faller in the leading index, by the way, is building materials group Wolseley, down another 33p at £12.90 after yesterday's disappointing results.
