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* FTSE 100 down 0.1 pct
* Capita suffers from Goldman downgrade
* CCH up after Coca Cola buys AB InBev Africa bottling stake
* QinetiQ rises after deal for Meggitt defence unit
By Alistair Smout
LONDON, Dec 21 Britain's top share index edged
lower on Wednesday after reaching a two-month high, influenced
by a weaker mining sector and with outsourcer Capita
also hit by a downgrade from Goldman Sachs.
By 1008 GMT, the FTSE 100 was down 5.42 points, or 0.1
percent, with materials, including the blue-chip miners,
trimming 4.5 points off the index.
The index had touched a fresh two month high in early deals,
having posted its highest close since October 11 in the previous
Mining stocks were the top sectoral fallers,
down 0.7 percent. Rio Tinto was the biggest faller in
the sector, down 1.2 percent, as a tropical storm headed towards
the Pilbara iron ore belt in Australia.
Top individual faller on the FTSE 100 was Capita,
down 1.7 percent after Goldman Sachs cut its target price on the
stock to 595p from 771p.
The investment bank said it expected free cash flow to
decline around by about 3 percent each year for the next two
years following Capita's recent trading update. Earlier in the
month the company gave its second profit warning in three
"In general, we see risks that the company's restructuring
plan will not address the major concerns we have about bidding
process and increasing cyclicality of the business model,"
analysts at Goldman Sachs said in a note, reiterating a
"neutral" rating on the stock.
Among risers, Coca-Cola Hellenic (CCH) was up 1.7
percent after Coca-Cola bought a majority stake in an
African bottling firm from AB InBev for $3.15 billion.
Coca-Cola said it planned to hold all operations temporarily
until they can be refranchised to other partners. Its existing
bottling partners include Coca-Cola European Partners and
Analysts said that CCH was well positioned to secure the
bottling rights due to its experience in Africa, and that the
deal looked like good value, coming in under expectations of $4
billion or more.
Among mid-caps, QinetiQ was up 4.6 percent after it
agreed to buy Meggit's defence business. Liberum said the deal
would enhance QinetiQ's position in global test and aviation
(Reporting by Alistair Smout; Editing by Keith Weir)