Thomas Cook starts to plunge as love-in with Investec ends

The move was sparked by the decision of Investec's analysts to initiate coverage on the group last week with a Buy recommendation, saying that although the group was battling for survival after an awful 2011, it was a fight it would win.

Today, however, those same scribes decided enough was enough. Downgrading their rather short-lived - albeit effective - Buy rating to a Hold, they claimed Thomas Cook's share price was "high enough for now" and that "the gap between pricing in failure and survival has been bridged".

The analysts also warned that Thomas Cook's banks might demand it tackle its gross debt and although asset disposals could be used to raise the cash required, the most likely scenario would be an equity raise.

They also played down the vague speculation that has accompanied the recent bounce suggesting bitter rival Tui Travel (down 0.4p to 197.65p) could launch a bid. The idea has been widely dismissed by traders given the obvious competition concerns such a tie-up would provoke.

In response, Thomas Cook slumped 3.3p, or 11.5%, to 24.9p on the small-cap index, although it remains roughly 12p higher than before starting its ascent.

After the FTSE 100 was knocked back in late trading yesterday by Fed chief Ben Bernanke's warning not to get too excited over recent promising economic data, the blue-chip index managed to move back above the 5900 level, climbing 32.11 points to 5903.62.

Man Group was in the gold medal position, advancing 11.2p to 142.2p after the Square Mile cheered the world's largest listed hedge fund manager's announcement that it was overhauling its dividend policy.

ITV was still enjoying the plaudits after its impressive final results on Wednesday, as analysts rushed to shower the X Factor broadcaster with praise. The group ticked up 5p to 427.1p, with Citigroup saying the figures "confirm our thesis that ITV is becoming a better company".

Punters dreamt of a possible bid battle as Cable & Wireless Worldwide jumped 5p to 32.9p, a move of 18%. The announcement from India's Tata Communications that it could be interested in an approach comes after mobile-phones giant Vodafone (up 0.95p to 170.33p) said last month it was considering a bid for the telecoms group.

JKX Oil & Gas spurted up 12.5p to 145p on the small-cap index on the news that its Russian unit Yuzhgazenergy had struck a deal to sell its gas from its Koshekhablskoye field in the country.

Down among the AIM-listed explorers, the takeover spotlight switched back onto Ithaca Energy. The North Sea oil and gas firm, which announced earlier in the year it had receive an approach, revealed it had now attracted a number of admirers. With some suggesting a possible price ranging between 225p and 250p per share, Ithaca spiked 32¼p, or 18.43%, to 207¼p, although it was quick to point out that there was no certainty an offer would actually be made.