Britain's FTSE falls but outpaces most of euro zone, BT boosted by EE deal
* FTSE 100 down 0.6 pct
* BT rises after confirming deal for EE
* Energy sector falls after renewed slump in oil
* Mixed results see AstraZeneca (NYSE: AZN - news) miss expectations
By Alistair Smout
LONDON, Feb 5 (Reuters) - Britain's top share index fell on
Thursday, dragged down by an oil-price-related slump in
commodity stocks but outperforming most European markets as a
strategic acquisition boosted telecom firm BT Group (LSE: BT-A.L - news) .
BT rose 4.5 percent to a 14-year high after saying it agreed
a 12.5 billion pound ($19 billion) deal for mobile operator EE,
with the share price absorbing news that the firm will raise 1
billion pounds through a placing of new stock to help fund the
deal.
"BT is the biggest service provider in the UK... and now
they're taking on EE's 33.8 percent share in the mobile sector,
which is significant," Trent Earwaker, trader at LONTRAD, said.
"It would certainly seem like good value, but that depends
on whether prices will have to rise by much to help pay for it."
Energy and basic materials stocks took 30 points off the
index, with Tullow Oil (LSE: TLW.L - news) , BG and Royal Dutch Shell (Xetra: R6C1.DE - news)
2-3 percent lower.
Brent crude fell again after crashing in late trade
on Wednesday, taking losses since the European market close in
the previous session to over 4 percent.
The FTSE 350 Mining sector fell 1.6 percent as
copper prices also slipped.
The main FTSE 100 index was down 42.62 points, or
0.6 percent, at 6,817.40 at 0911 GMT.
While the index's heavy weighting in oil stocks saw it lag
Germany's DAX, it outperformed falls of over 1 percent
in peripheral euro zone markets after the European Central Bank
unexpectedly said it would stop accepting of Greek bonds in
return for funding.
Coca Cola Hellenic, which has substantial exposure
to Greece, was a top faller, down 2.8 percent.
The broad euro zone Euro STOXX 50 index was down
0.8 percent
Earnings reports from British companies were mixed.
AstraZeneca down 3 percent after it said fourth
quarter results missed expectations.
"AstraZeneca has disappointed - revenue is up but weaker
headline figures will weigh on the shares," Mark Ward, head of
execution trading at Sanlam Securities, said.
Artificial hip and knee manufacturer Smith & Nephew (LSE: SN.L - news)
rose over 1 percent after it posted a 7 percent rise in trading
profit in the fourth quarter, and said it was confident it would
increase both revenue and its trading profit margin in 2015.
Compass Group (Other OTC: CMPGF - news) rose 2 percent after results, as the
world's biggest catering firm, maintained its full-year outlook.
(editing by John Stonestreet)