Reuters: Shell drags FTSE higher as bid talk swirls (ShellNews.net)
By Louise Heavens
Mon 16 August, 2004 10:29
LONDON (Reuters) - Gains in Shell have helped drag the FTSE 100 into positive territory on talk that French rival Total may bid for the company, providing interest in an otherwise quiet day for corporate news.
By 9:56 a.m. on Monday the FTSE 100 .FTSE was up 3.6 points, or 0.1 percent, at 4,305.1 -- reversing an earlier fall to 4,283.
Shell outperformed the oil sector with a 1.8 percent gain, adding about 3 points to the FTSE -- after a weekend press report that its executives are concerned about a possible takeover bid from French rival Total. Total declined to comment.
Turnover was extremely light, however, with barely 200 million shares changing hands by mid-morning.
"These really are the dead days of August, we're pretty much through the results season, we're now waiting for September," said Nigel Cobby, managing director of European equities at JP Morgan.
"The only thing that will get the market out of its stupor is a big bid in the banking sector -- and that's entirely plausible."
Shares in British Airways BAY.L made an impressive recovery, rising 1.6 percent after an earlier 2 percent fall on concerns rocketing fuel costs would hinder its recovery.
Crude oil, which had hit a peak of $46.91 a barrel, eased after early reports of victory for Venezuelan President Hugo Chavez in a referendum on his rule eased fears that unrest could upset the country's oil exports.
http://www.reuters.co.uk/newsPackageArticle.jhtml?type=businessNews&storyID=565977§ion=finance