Market Report: BSkyB jumps as News Corp seeks to gain control

BSkyB shares claim the spotlight at 713.5p, up 113p, following reports that Rupert Murdoch's News Corp is seeking full control. The broadcaster says it would consider the terms of a proposal if it would deliver value in excess of 800p-a-share. ITV attracted sympathetic support at 58.55p, up 1.70p.

Elsewhere markets lose ground again as eurozone debt worries resurface in the wake of Moody's decision to cut Greece government ratings to junk yesterday.

By 8.45am the FTSE 100 index was 35 points adrift at 5,166 and the Mid-250 index was 35 points easier at 9,760.

Tesco eased 2p to 390p as dealers digested slightly disappointing first-quarter sales figures where higher food inflation than anticipated is causing some basket substitution.

BP perked up 2.60p to 358p ahead of today's grilling in US Congress amid reports that the beleaguered oil giant has hired three banks to stop a potential hostile takeover.

More positive broker comment sustained the recent advance in Intercontinental Hotels at £12.03, up 6p, but a Bank of America rating downgrade contributed to a fall of 31p to 790p in Inmarsat.

Miners gave back some of yesterday's gains with Anglo American down 41p to £26.31 and Lonmin 22p lower at 54.12p.

Dull banks had Lloyds off 0.79p to 54.11p, but Tullett Prebon rose 9p to 350p as Goldman Sachs raised its target price to 370p from 330p.

Yesterday's upbeat trading statement prompted a raft of broker 'buy' notes for Weir Group, 5p better at £10.71, but a cautious update this morning left Bellway languishing at 621.5p, down 13.5p.

Among the small caps Andor Technology jumped 22p to 216p in response to an 87% surge in first-half profits and a positive statement lifted NWF Group 10.5p to 97p.

Encouraging trading news also supported Avingtrans at 35p, up 2.5p and Nationwide Accident, 3.5p better at 82.7p.

African Eagle hardened 0.6250p to 4.75p after doubling its resource at its Tanzania project, but Global Energy tumbled 44.5p to 70.8p after abandoning its Rio Verde-2 well.