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Thomas Cook investors must feel in need of a holiday. The package tours group was the biggest loser in the top flight today, shedding 11¼p to 214p, amid renewed fears that its stricken German parent will offload its stake.
Arcandor — which holds 52.8% of its shares — has applied again to Berlin for aid but Germany's economic minister this afternoon urged Arcandor's shareholders and creditors to help the company out themselves.
Politicians have said it is unlikely the retail and tourism giant will receive a state handout as its problems pre-dated the financial crisis and the EU Commission has already said it is ineligible.
The FTSE 100 gained 39.46 points to 4426.4 with the heavyweight mining shares leading the index higher.
The benchmark came close to the 4500 mark mid-afternoon, before giving up some of the gains as investors pocketed profits and closed their positions ahead of the weekend. Although the Labour Party's meltdown offered some distraction, eyes were mostly turned to the US for May's jobs report, which fuelled talk of green shoots in the world's biggest economy.
The non-farm payrolls data showed the smallest decline in eight months, with the US economy shedding 345,000 jobs in May — a much better-than-expected result. But it wasn't enough to keep the optimistic mood in New York, where the Dow Jones lost early gains to trade 21.95 points lower at 8728.29.
News that Rio Tinto has dumped Chinalco for a fling with arch-rival BHP Billiton made mining shares gleam. Rio jumped 310p to 3030p, to claim the crown among blue-chips, as it also unveiled a rights issue to raise $15.2 billion (£9.5 billion). Its shares were heavily sold-off yesterday amid concerns of the size of its cash call but the BHP tie-up improved the mood.
BHP soared 128p to 1584p as the news helped miners to claim almost all the top spots on the Footsie winner's board. Eurasian Natural Resources added 33p to 669p, Vedanta was 94p higher at 1620p and Kazakhmys gained 35p to 697p.
After Turkey's Genel Enerji was reported to be Heritage Oil's mystery suitor and Dubai's ENOC said it was looking to secure control of Dragon Oil, investors were scrabbling around to spot the next company in the industry to attract a bid. Rumour in the City is that Lamprell, the oil services group, could be on a suitor's shopping list. Its shares gained 2½p to 127¾p.
All the takeover talk caused the Queen's stockbroker Cazenove to reiterate its overweight stance on the sector, warning investors that they risk missing out on some mergers and acquisitions action if they don't buy now. Elsewhere, the oil gods were still smiling on BG Group, which today reported further drilling success.
The oil explorer has struck black gold once again in the Santos Basin in Brazil, pushing its shares up 30p to 1153p.
Next week's FTSE reshuffle should mark a glorious start for Xavier Rolet, the new chief executive of the London Stock Exchange. The LSE is expected to regain its position among the blue-chips along with builders' merchant Wolseley and private equity house 3i.
The Exchange was embarrassingly booted out of the top flight in March after its shares plummeted but sentiment has since improved on signs that the markets are stabilising and equities will once again be the investment of choice. Today its shares leapt 40½p to 812p, helped by news that last month the average daily value traded was up 9% on April.
Fellow candidate for promotion 3i was also making a last ditch attempt to secure its position on the top flight.
The company was the biggest mid-cap winner, up 25½p to 250½p after falling heavily yesterday, leaving Guevoura Fund — who today revealed they were short selling the shares — with burnt fingers.
Among small caps, Nighthawk Energy gained 4¾p to 44¾p. Talk is that Lloyds Banking Group has sold the 5% stake it inherited in the AIM-listed gas explorer when it took over HBOS.
Bollywood blockbuster maker Eros International shot up 8p to 106½p as it appeared that a four-month stand-off between film producers and Indian cinema owners has ended. Multiplexes and movie makers have agreed a deal to share box office receipts.
Evolution Securities slapped a buy rating on Eros, whose focus on big budget projects will make it one of the biggest winners from the deal.
