LONDON (ShareCast) - Severn Trent topped the leaderboard after it confirmed press speculation that it has received a bid approach from a consortium of investors, which is rumoured to value the UK utility company around 5.3bn pounds. In a statement released this morning, Severn Trent said it had received an approach with a view to making a proposal from Canadian infrastructure investor Borealis, the Kuwait Investment Office and Universities Superannuation Scheme.

Engineering support services giant Babcock was boosted after Panmure Gordon said that there is scope for forecast upgrades after the group's better-than-expected full-year results. "Babcock has exceeded our forecast expectations on all fronts this morning, representing what was a very strong year for the group," said analysts Mike Allen and Paul Jones.

Natural gas provider BG Group was another strong riser after it reported that its immediate priority going forwards is the delivery of its 2013 milestones and growth projects in Australia and Brazil.

Worries about the global economy were weighing heavily on the mining sectors on Tuesday, as concerns over the demand outlook prompted investors to scale back their appetite for risk.

Fears of a hard landing in China have dampened sentiment today after JPMorgan Chase & Co cut its economic growth forecasts for the country for this year, while a fund manager survey by Bank of America Merrill Lynch showed that investors are “positioning themselves for slower growth in China and prolonged low inflation”.

Outsourcing group Capita was also lower despite revealing that it has secured six new major deals worth a total of £660m since the start of the year.


FTSE 100 - Risers
Severn Trent (SVT) 2,065.00p +13.15%
Babcock International Group (BAB) 1,155.00p +6.06%
BG Group (BG.) 1,227.00p +3.50%
United Utilities Group (UU.) 761.50p +2.98%
Croda International (CRDA) 2,580.00p +2.95%
Rolls-Royce Holdings (RR.) 1,211.00p +2.28%
Polymetal International (POLY) 715.50p +2.07%
SABMiller (SAB) 3,649.00p +1.84%
Wood Group (John) (WG.) 834.00p +1.77%
Compass Group (CPG) 874.00p +1.63%

FTSE 100 - Fallers
Evraz (EVR) 162.70p -3.96%
Vedanta Resources (VED) 1,243.00p -2.89%
Anglo American (AAL) 1,535.00p -2.66%
Fresnillo (FRES) 1,129.00p -1.91%
Glencore Xstrata (GLEN) 338.90p -1.85%
Randgold Resources Ltd. (RRS) 4,968.00p -1.82%
Capita (CPI) 925.50p -1.80%
Burberry Group (BRBY) 1,388.00p -1.42%
easyJet (EZJ) 1,126.00p -1.40%
Kingfisher (KGF) 326.00p -1.39%

NR

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