FTSE steadies as bid chatter lifts Imperial Tobacco

* FTSE 100 flat, stays near 1-week highs

* Imperial Tobacco (LSE: IMT.L - news) rises, traders cite bid rumours

* Airline stocks fall on security concerns

By Sudip Kar-Gupta and Atul Prakash

LONDON, Nov 20 (Reuters) - Britain's top equity index stayed near its highest level in around a week on Friday, helped by Imperial Tobacco which advanced on the back of bid rumours.

However, airline stocks came under pressure, with traders citing an attack on a luxury hotel in Mali and broker downgrades as reasons for the weakness.

The blue-chip FTSE 100 index was flat in percentage terms at 6,330.32 points by 1137 GMT. But Imperial Tobacco rose more than 2 percent, with trading volumes reaching to 175 percent of its 90-day daily average.

"Imperial racing ahead. Bid rumours everywhere," said Justin Haque, director at Hobart Capital Markets.

Haque said Japan Tobacco (Other OTC: JAPAF - news) might bid for it, while another trader said rival British American Tobacco could make a bid. Officials at Imperial Tobacco could not be immediately reached for comment on the matter.

Shares (Berlin: DI6.BE - news) in easyJet and Ryanair fell 1 to 3 percent, with traders citing an attack on a luxury hotel in Mali and broker downgrades as reasons for the weakness. British Airways owner IAG were also down 1.4 percent.

"It (Other OTC: ITGL - news) 's the security threat for the whole travel & leisure sector - all are getting smoked," a trader said.

EasyJet (Other OTC: EJTTF - news) shares also felt some selling pressure after Kepler Cheuvreux cut its rating on the airline to "reduce" from "hold" and Barclays (LSE: BARC.L - news) reduced its target price for the stock.

Among other stocks to lose ground was security company G4S (Amsterdam: GF6.AS - news) , which fell 2.5 percent as JP Morgan cut its price target on the stock.

The FTSE 100 is down around 4 percent since the start of 2015 and some 10 percent below a record high of 7,122.74 points reached in April (LSE: 0N69.L - news) .

The benchmark index has fallen back in the second half of this year, along with other global markets, on concerns about a slowdown in China and uncertainty over the timing of a possible U.S (Other OTC: UBGXF - news) . interest rate hike. (Editing by Andrew Heavens)