As if a real FTSE 100 bid approach was not enough, the rumour mill just keeps grinding out new tales.
Earlier on there was talk of takeover interest in Prudential, up 19p to 658.5p. And now British Energy, 21p higher at 593p, is being mentioned as a possible target for Germany's RWE. However, it may be remembered that Centrica was supposedly a bidder for British Energy not so long ago, and nothing has - so far - emerged.
The real takeover approach involved ENRC, down 12.5p at 967.5p, making a move on Kazakh rival Kazakhmys, up 235p to £17.70.
The FTSE 100 is 91.9 points higher at 5782.3, with Wall Street up around 45 points in early trading.
However gilts have slipped back after chancellor Darling announced a bigger than expected issuance programme.
James Knightley at ING said: "The big [budget] news was the surge in gilt issuance as published by the Debt ManagementOffice. The DMO now plans to raise £85.8bn in 2008-0, well above the £56bn expected by the market. This outcome is largely down to the Treasury's decision to replace the loan from the Bank of England to Northern Rock with a direct loan from the Treasury to Northern Rock. As a result, gilts are selling off across the curve given the lack of direction as to where the extra issuance
is coming from."
On the budget in general, he said: "The overall tone is that the government has very little room for manoeuvre and that the downside risks to growth are increasing. Given the lack of fiscal boost this presents no further obstacles for eventual Bank of England rate cuts. Indeed, we continue to look for a May rate cut despite the
anticipated pick-up in inflation, with rates down to 4.25% in the first quarter of 2009."
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