By Jason Theodorou
The FTSE 100 has failed to be bolstered by a deal between Vedanta Resources and Cairn Energy, suggesting a continued slowdown in the global economy. The FTSE 100 was buoyed by the news that Cairn Energy would sell 51% of its Indian operations to Vedanta Resources, but poor results for BP and RSA saw the FTSE 100 drop by 10.7 points.
Cairn Energy will take a controlling interest in Vendanta’s Indian arm, while Vedanta will pay up to $9.6 billion for a stake of 51-60% in Cairn India. The deal is expected to deliver excellent returns to shareholders.
BP shares suffered a downturn after the state of Alabama announced that it will sue the oil giant for its part in the Gulf of Mexico oil disaster. Shares in the firm fell by 6.6p, after the state said it would make a claim for ‘catastrophic harm’ caused by the crisis.
Michael Page fell by 1.7% after the UK’s second largest recruitment company saw a 42% rise in pre-tax profit to £61.4 million, as companies drove forward recruitment plans.
The FTSE 100 saw its biggest weekly decline since the beginning of July, down by 0.5%. The mid-cap FTSE 250 was down by 0.4%.