FTSE firm despite US uncertainty

FTSE firm despite US uncertainty

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The FTSE 100 Index was up 25.6 points at 5770.9

The FTSE 100 Index shrugged off an uncertain start to trading on Wall Street as a raft of UK firms revealed takeover news.

Banknote printer De La Rue surged 32% as its French suitor confirmed it was behind a near-£900 million approach for the troubled firm, while blue chip miner Rio Tinto was also in the spotlight after its £2.2 billion approach for Australian firm Riversdale mining.

The Footsie rose 25.6 points to 5770.9 amid the takeover excitement, despite early losses on the Dow Jones Industrial Average in America.

US stocks fell after Federal Reserve bank chairman Ben Bernanke hinted that a third round of quantitative easing may be needed to keep America’s recovery on track.

He said in an interview on Sunday night that the US economy was still struggling to become “self-sustaining”.

Disappointing US payrolls data on Friday has added to concerns over the recovery.

In London, investor attention was set firmly on takeover developments in the Footsie and second tier.

FTSE 100 listed miner Rio Tinto has sparked a potential bid battle for Riversdale after it was flushed out as a suitor, with Rio’s shares lifting 24.5p to 4440p.

However, much of the focus was outside the blue chip index with De La Rue top of the FTSE 250 risers board – up 198.5p to 846p – after it confirmed an “opportunistic” approach.

French rival Oberthur Technologies later revealed it was De La Rue’s suitor.

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