FTSE rises amid transport gains

The FTSE 100 Index up 42.6 points to 4590.1 in mid-morning trading

A takeover move from FirstGroup for rival National Express sent transport shares higher on the London market.

National Express was one of the largest gainers in the FTSE 250 Index despite news it had rejected FirstGroup's advances.

Vodafone's reported interest in a bid for T-Mobile UK also attracted focus in the top flight in an otherwise lacklustre session, with the FTSE 100 Index hugging its opening mark, ahead 7 points at 4248 by mid-morning.

A tie-up would give Vodafone 40% of the UK market, but this was not enough to inspire its share price, which edged 0.60p higher to 116.8p.

However, a broker upgrade from Goldman Sachs for Lloyds Banking Group helped the blue chip to stand out, rising nearly 4% or 2.53p to 69.02p. An upgrade also lifted insurance group Admiral, ahead 26p to 882p.

In the second-tier, debt-laden National Express surged more than 5% or 14.75p to 290.5p after it said it had rebuffed the approach from FirstGroup.

The interest boosted hopes of consolidation in the sector, with Arriva ahead 6p at 418.25p, Stagecoach up 2.5p at 127.25p and Go-Ahead 4p stronger at 1241p.

FirstGroup lost initial gains to stand 3p lower at 367.75p after its takeover target said it did not consider it appropriate to enter talks with its larger suitor "at present".

Another of the biggest gains in the FTSE 250 came from Hargreaves Lansdown after the fund management firm said it expected full-year results to be above of market forecasts. Shares bounced 11.5p to 212.5p, a gain of 5%.

Retailer HMV joined the group on the risers board - up by 4p to 118.75p - ahead of its full-year results. Meanwhile, online fashion firm ASOS eased back by 1.25p to 378.75p after it reported a slowing in its rate of sales growth.