Wolseley builds FTSE gains

Wolseley builds FTSE gains

Building materials group Wolseley helped the FTSE 100 to gain more than 60 points this morning.

Wolseley was up 12% to 395p on talk that it could sell its US operations.

The company has been hit by slowdown in the construction industry and has axed some 6,000 over the past year.

Last month it warned that trading was worsening.

Any disposal of the US business would ease a debt pile of £2.7bn - which exceeds last night's market capitalization of £2.3bn.

Overall, the FTSE 100 was up 62 points or 1.2% to 5382.2.

Other major winners were travel-related groups, who benefited from a fall in the oil price.Travel group TUI was up 8% to 211.75p - while Thomas Cook rose 8% to 215.25p.

The fall in the price meant Tullow Oil was the FTSE 100's biggest faller - down 6% to 718.5p.

Coal power station group Drax slid 3% to 699p after announcing a 28% fall in first-half profits.

The FTSE 250's gainers were led by recruitment consultancy Michael Page.

Shares soared by 32% to 350.5p - valuing the company at more than £1bn - after it confirmed it had received a bid approach from Swiss-based rival Adecco.

Michael Page, which has around 150 offices in 25 countries, said it had received an unsolicited takeover approach from Adecco, but said it wanted to stay independent.

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recruiter Hays was pulled up 16% to 94.5p, making it the FTSE 250's second biggest climber.

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