* FTSE 100 falls 0.1 pct
* Miners hurt; metals prices ease on dollar gains
* Banks fall on persistent euro zone jitters
* Burberry, Smith & Nephew rise on bid talk
By Tricia Wright
LONDON, Dec 8 (Reuters) - Britain's top share index edged
lower on Wednesday, held back by miners and bank stocks, while
takeover speculation boosted Burberry <BRBY.L> and Smith &
Nephew <SN.L>.
By 1210 GMT, the FTSE 100 <> was down 3.28 points, or
0.1 percent, at 5,805.17, after it advanced to a three-week
closing high on Tuesday, up 0.7 percent to 5,808.45.
"I think (the FTSE 100) is marking time because of the
situation in Ireland and in the euro zone, and the potential for
QE3 (a third round of quantitative easing) in the U.S.," Martin
Dobson, head of trading at Westhouse Securities, said.
"The other factor... is that the Chinese economic
announcements for November are coming out at the weekend rather
than on Monday. I think there are vague stories going round that
there is potential for interest rate rises in China."
Miners fell slightly as copper <CMCU3> prices eased on the
back of a stronger dollar after U.S. Treasury yields surged on a
proposed extension in U.S. tax cuts, and as the concerns over
the potential rate hikes in China weighed on sentiment.
Kazakhmys <KAZ.L> was among the biggest fallers, down 1.3
percent.
Banks <.FTNMX8350> were out of favour, with traders pointing
to the uncertainty surrounding European sovereign debt.
The Irish government detailed the toughest budget on record
on Tuesday, targeting 6 billion euros ($7.93 billion) in
spending cuts and tax hikes, and warning passage was crucial to
avert a deeper crisis and free up EU and IMF rescue funds.
[]
M&A BOOST
Takeover speculation propelled Smith & Nephew <SN.L> to the
top of the blue-chip leader board, up 5.2 percent.
The Daily Mail newspaper's market report noted talk of a 7.1
billion pound, or 8 pounds-a-share cash offer from a U.S.
consortium of private equity players for the maker of
replacement knees and hips.
Smith & Nephew declined to comment.
Burberry <BRBY.L> climbed 4 percent as traders cited rumours
of bid interest for the luxury goods group.
Burberry declined to comment.
Security services group G4S <GFS.L>, meanwhile, put on 4.4
percent, with traders pointing to a big stock overhang being
cleared at Merrill Lynch.
Positive broker sentiment lifted Prudential <PRU.L>, up 2.9
percent, with UBS adding the insurer to its "Key Calls" list and
raising its price target, citing growth prospects in Asia.
On the downside, Capital Shopping Centres (CSC) <CSCG.L>
topped the FTSE 100 fallers' list, dropping 4.4 percent, after
shareholder Simon Property <SPG.N> said it might quit its 5
percent stake in protest over CSC's 1.6 billion pound ($2.5
billion) plan to buy a UK mall, which it criticised as being
value destructive. []
3i Group <III.L>, Associated British Foods <ABF.L>, Investec
<INVP.L> and Vedanta Resources <VED.L> fell after going
ex-dividend.
U.S. stock index futures <SPc1> <DJc1> <NDc1> pointed to a
mixed opening on Wall Street on Wednesday.
(Editing by Erica Billingham)
