A dip on Wall Street has taken the shine off London shares. The US market fell back at the open after news of disappointing factory orders, helping pull the FTSE 100 3 points lower at 6026.2. At its peak the leading index was nearly 50 points higher.
Financial shares performed well, with Royal Bank of Scotland up 16.75p to 405.5p after reports that the bank was playing down talk it might need a rights issue. Barclays also recovered, up 9.25p to 481.25p, while Lloyds TSB ended 5.75p ahead at 447.5p.
But Northern Rock - which was defying gravity early on - came back to earth with a bump after Olivant ruled itself out of the bidding. After jumping by 11p, the bank closed 8p lower at 88p.
Still with bid talk, insurer Friends Provident climbed 4.7p to 140.7p on hopes that US private equity group JC Flowers would make an offer. And ITV added 2.1p to 78.6p, also on talk of private equity interest.
In the world of real bids, pubs group Mitchells & Butlers rose 16.25p to 466.5p as rival Punch Taverns, down 46p to 667.5p, confirmed its plan for a - nearly - all share merger.
FKI slipped 1p to 66p as fellow engineer Melrose proposed a 70p a share offer, while life sciences group Whatman climbed 23.25p to 265.25p on news of a 270p a share offer from GE Healthcare.
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