Shares in wireless technology firm CSR leapt by a third after it rebuffed a takeover bid from a US rival.
Even though CSR rejected an initial offer from Microchip Technology, the shares surged 205p to 780p as traders anticipated a possible bidding war for the firm.
Alastair McCaig, Market Analyst, IG, said: “Shares in CSR has been subdued of late but, being well-placed to take advantage of the shifting trends of connectivity, it will be reluctant to sell itself short.”
In the top flight, beleaguered supermarket chain Morrisons rallied for a second day in a row after Deutsche Bank removed its “sell” rating, a day after industry till-roll figures showed an improved trend for sales over the last four weeks. The shares, which have endured a miserable year so far, rose 2.5p to 186.9p.
But the FTSE 100 was dragged lower by falling mining stocks and more worries over Ukraine. The index dropped 24.86 points to 6,805.8 as the conflict escalated throughout the day.
A fall in Chinese iron ore prices drove mining stocks lower. Rio Tinto was one of the biggest fallers with a decline of nearly 4 per cent, down 126.5p to 3,209p, while Anglo American dropped 55.5p to 1,512.5p and BHP Billiton eased 54.5p to 1,891p.
In contrast to Morrisons, shares in Tesco and Sainsbury’s remained under pressure after the Kantar Worldpanel data, which showed them losing sales to rivals. Tesco was 3p cheaper at 246.3p, while Sainsbury’s was down 0.7p at 303.5p.
The flight from the grocery sector included online player Ocado after analysts at Redburn Partners slashed their target price on the stock by almost half in part due to fears that the company’s technology is over-valued by the market. Shares slumped by 16 per cent or 64.3p to 339.3p.