By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- The U.K.'s FTSE 100 posted its strongest
close in more than a week on Tuesday, aided by a jump in shares of
InterContinental Hotels Group.
The U.K. blue-chip index closed up 0.4% at 6,844.94, with a 3.4%
rise in InterContinental Hotels Group after the owner of Holiday
Inns, Crowne Plaza and other hospitality chains reportedly said
over the weekend it had rejected a GBP6 billion bid (GBP10.12
billion) from an unnamed U.S. company. IHG is bracing for the
suitor, or another rival, to make a play for IHG, according to a
Sky News report.
Meanwhile, Pfizer Inc. (PFE) walked away from its $120 billion
bid to buy AstraZeneca PLC as a Monday deadline for the two drug
makers to enter takeover talks passed.
AstraZeneca shares (AZN) traded in London were hit, ending lower
by 1.6%. Société Générale cut its rating on AstraZeneca to sell
from hold, and Panmure Gordon lowered its price target on the
company, according to Dow Jones Newswires.
The FTSE 100's biggest decliner was gold miner Fresnillo PLC ,
down 3.2% as gold prices slid more than 1% below $1,277. Shares of
Randgold Resources Ltd. also struggled as they lost 1.7% Technical
selling and equity gains were viewed as some of the factors
weighing on gold futures.
But in the plus column, Lloyds Banking Group (LYG) shares rose
1.6% after the company said it would float its TSB unit on the
London Stock Exchange later next month, a move regulators hope will
boost competition in the British retail-banking market. Lloyds is
24.9% owned by the U.K. government, and was ordered by the European
Union to sell more than 600 retail branches in 2009 after its
government bailout.
On the broader European equity market, the Stoxx Europe 600
index finished higher, hanging at a six-year high.
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