It's time for the Friday rumour, and this time the victim is pharmaceuticals group Shire. The company's shares have jumped 51p to 994p, a 5.4% rise.
The impetus seems to be a tale that US rival Pfizer might be interested in bidding. Around 6m shares have already been traded, the amount normally changing hands in a whole day, so someone clearly thinks something is going on. But analysts were slightly sceptical that Shire would fit with Pfizer.
Meanwhile supermarkets were on the way down after a downbeat note from Goldman Sachs. Tesco, down 8.25p to 385.75p, was cut from neutral to sell. The group was also hit by research from Piper Jaffray which suggested its recently launched US business was already producing disappointing results.
Goldman has also downgraded Morrison Supermarkets, 8.75p lower at 281p, from buy to neutral and J Sainsbury, down 2.5p to 337p,from conviction buy to buy.
Elsewhere Dresdner Kleinwort has cut Next from £20.80 to £14.40 and Debenhams from 68p to 55p. Next is 6p lower at £11.68 but Debenhams is 1p higher at 61p.
Miners were lifted by news of a hostile bid by China' Sinosteel for Australia's Midwest Corporation. The renewed takeover moves lifted predator BHP Billiton 31p to £15.65 and its target Rio Tinto 103p to £55.10.
Overall, yesterday's slight bounce on Wall Street after its earlier falls has encouraged the FTSE 100 to a 28.1 point rise to 5720.5.
