Online gaming shares were under the cosh again after US authorities stepped up their investigations into the industry.
The US department of justice has asked for information from major investment banks relating to the funding of online gambling, which was effectively banned in America last October. This latest move follows the detention last week in the US of two founders of online payment service Neteller, whose shares were immediately suspended at 176p.
Today PartyGaming fell 3p to 27.75p - a near 10% drop - while Sportingbet lost 3.25p to 34p and Playtech, which supplies software for the online gaming industry, was 6.5p lower at 265p. 888 Holdings, which is expected to be taken over by Ladbrokes, edged down 4.25p to 116p.
Overall, despite the usual spate of takeover speculation, the market failed to hold onto earlier gains and fell into negative territory after an opening fall on Wall Street. US investors were concerned about a downgrade on Boeing and the effect of a recovering oil price on company earnings. By the close, the FTSE 100 was down 18.8 points at 6218.4.
On the takeover front, insurer Resolution added 6p to 657.5p on suggestions of interest from US giant American International. Some traders were talking of a take out price of as much as 850p a share.
Other bid tales included InterContinental Hotels, up 8p to £13.08 after news that the Barclay Brothers, owners of the Ritz Hotel in London, held a 5% stake in the company.
Steel giant Corus was 2p better at 547p awaiting the latest developments in the battle for control of the company between India's Tata and Brazil's CSN.
Even venture capital group 3i was not immune, up 22p to £10.67 on unspecified bid talk.
And advertising group Aegis rose 2p to 142p as whispers went round of a possible 170p bid from larger French rival Publicis. A denial from Publicis did little to dent the enthusiasm.
However chemicals group ICI slipped 4.5p to 474.75p despite continuing talk of a possible bid from rival Akzo Nobel. Goldman Sachs raised its target price for the company from 410p to 500p. It said a strategic buyer could afford to pay up to 550p, but warned that ICI was worth 418p on a standalone basis.
Publishing group Pearson was the major faller in the leading index after a trading statement. The company's shares, which have been driven higher in recent days by bid speculation and hopes of a break-up, lost 24p to 817.5p. Pearson said it expected to post full year results at the top end of market expectations, but fading takeover hopes were said by traders to be behind this morning's share price fall. On top of that ABN Amro issued a sell note, saying any major changes were now in the share price, and may in any case disappoint. The ABN analysts said they believed a private equity bid, a sale of the Financial Times, or a share buy back were all "illusory". Meanwhile Panmure Gordon also advised clients to sell, saying the company's valuation was not justified by the underlying growth of the business.
British Airways was also under pressure, down 8.5p to 536p after news of a three day strike by cabin crew.
Enterprise Inns lost 13.5p to 653.5p after Merrill Lynch downgraded Britain's second biggest pub operator to 'neutral' from 'buy', while spread betting firm IG Index reported a 45% rise in first half profits but still saw its shares slump 13.25p to 269.75p.
Building materials and plumbing group Wolseley showed the scars of the recent downturn in the US housing market. In a trading statement it said profits for the fived months to the end of December were down around 14%, but with a batch of fairly upbeat analysts' notes, the shares recovered from early losses to close unchanged at £13.49.
Miners were mixed after some uncertainty over metals prices. Nickel soared to a new high but copper slipped on worries about rising stocks, while aluminium held steady. Anglo American added 16p to £23.548, while Kazakhmys rose 9p to £10.52, but going the other way was Xstrata, down 5p to £22.92.
Software group Autonomy was up 24p to 570.5p after it signed a deal with GlaxoSmithKline whereby the drugs giant will use its Idol 7 data platform across the company.
And pharmaceuticals group Hikma rose 9.75p to 371p on news it was buying a German cancer specialist for $45m (£22.8m).
Lower down the market UK Coal slipped 6.5p to 405.75p. The company suffered a fatality at its Daw Mill mine last week, and warned production would be restricted as a result for around four weeks.
And architects group Aukett Fitzroy Robinson lost 1.25p to 16p despite full-year profits rising from £159,000 to £786,000. Analysts at JM Finn are expecting profits of around £1.9m this year, citing a record order book in the UK and Russia.
Cranswick, the producer of premium sausages and pork products, rose 14p to 918p on a buy note from Citigroup predicting profit before tax of £33m in the current year and setting a target price of £10.10.
Finally electric vehicle specialist Tanfield accelerated 5.25p to 69.5p after it signed a deal with Enova Systems, up 40p to 220p, for Enova to supply electric drive train systems for its zero emission trucks and vans.