Britain's FTSE falls on commodities weakness, Old Mutual surges

* FTSE 100 down 0.6 pct

* Old Mutual (Other OTC: ODMTY - news) surges on media report of break-up

* Miners fall for first time in six sessions

* InterContinental Hotels Group falls on downgrade

By Kit Rees

LONDON, March 7 (Reuters) - UK shares edged lower on Monday as miners fell for the first time in six sessions, weighed down by falling commodities prices which offset a jump in Old Mutual shares.

The blue-chip FTSE 100 index edged 0.6 percent lower to 6,165.41 points by 0937 GMT, in line with the wider European market.

South Africa-facing life insurance company Old Mutual was the standout performer, surging 7.7 percent to hit a three-month high, on track for its best day since December 2011.

A media report on Saturday said that the company was planning a 9 billion pound ($12.8 billion) break-up into standalone units which could trigger a takeover battle for its various operations.

"Being (an) African-based organisation ... this emerging markets sell-off and currency routs over the last six months put some real pressure on them, and unfortunately they're being pushed into a situation where they have to act and actually look at some disposals to shore themselves up," Jonathan Roy, advisory investment manager at Charles Hanover Investments, said.

"The market's really responding to the decisive action from the board," he added.

Old Mutual said on Monday that it was considering all options available to it under the strategic review announced in November, but had not yet made any decision on the review process.

The UK mining sector broke its six-session streak of straight gains, dropping 2.3 percent with investors citing profit-taking following the rally.

Glencore (Xetra: A1JAGV - news) , BHP Billiton (NYSE: BBL - news) and Anglo American (LSE: AAL.L - news) fell between 2.1 percent and 3.5 percent, tracking the price of copper which slipped from four-month highs hit on Friday as traders took profits on concerns that prices had overshot fundamental demand.

InterContinental Hotels Group fell 2.5 percent after a downgrade to 'sell' by investment bank Citigroup (NYSE: C - news) , which was cautious on the European hotels sector as a whole.

"Expectations of European economic recovery, sector M&A and reasonable (mid-cycle) valuations have kept us positive on the hotel sector ... but with increasing signs of a slowing global economy a clearer trend is emerging," analysts at Citigroup said in a note, adding that they were capitalising on recent strength at IHG.

Satellite communications company Inmarsat (Other OTC: IMASF - news) also fell 1.8 percent on a price target cut from Citigroup, which cited higher investment and lower growth as offsetting the beneficial impact of forex.

In positive territory, however, wealth manager St. James's Place and Standard Life (LSE: SL.L - news) rose 5.2 percent and 1.7 percent respectively after British finance minister George Osborne dropped plans for a pensions overhaul on Saturday.

(Reporting by Kit Rees)