Most U.K. Stocks Rise, Led by BHP Billiton; Lloyds TSB Declines

By Sarah Thompson

Nov. 3 (Bloomberg) -- Most U.K. stocks rose, led by BHP Billiton Ltd., the world's biggest mining company, and Rio Tinto Group, as metals prices rallied.

Lloyds TSB Group Plc declined after the U.K. bank that agreed to buy HBOS Plc in a rescue arranged by the government said profit in the first nine months fell by 270 million pounds ($442 million) on credit-related writedowns.

The FTSE 100 Index lost 0.25, or less than 0.1 percent, to 4,377.09 at 8:44 a.m. in London as 73 stocks gained and 26 retreated. The FTSE All-Share Index added 0.2 percent and Ireland's ISEQ Index retreated 0.4 percent.

BHP Billiton increased 1.6 percent to 1,070 pence. Rio Tinto, the world's third-largest mining company, added 0.7 percent to 2,884 pence.

Copper for delivery in three months rallied as much as 2.7 percent to $4,210 a metric ton in London. Nickel, lead, zinc and aluminum prices also rose.

Lloyds decreased 2.2 percent to 193.5 pence. Cost savings from the planned takeover of HBOS will exceed 1.5 billion pounds, more than initially estimated, the London-based bank said today.

Lloyds TSB agreed to buy HBOS in a deal valued at 6.3 billion pounds as of Oct. 31 as the government waived competition concerns and allowed a takeover creating a bank with a 28 percent share of Britain's mortgage market. The banks are seeking to raise 17 billion pounds in a share sale underwritten by the government, which may own as 43 percent of the combined company.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

U.K. companies:

British Sky Broadcasting Group Plc (BSY LN) advanced 10 pence, or 2.6 percent, to 388.5. The U.K.'s biggest pay- television provider has made a 450 million pounds ($725 million) bid to buy Tiscali SpA's U.K. business, the Sunday Times reported, without saying where it got the information.

Chloride Group (CHLD LN) climbed 9.25 pence, or 7 percent, to 141.25. The U.K.'s largest maker of backup power equipment said first-half profit rose 37 percent on increasing demand in Europe, Russia and Asia.

Tesco Plc (TSCO LN) lost 1.4 pence, or 0.4 percent, to 338. Tesco was cut to ``sell' from ``hold'' at Societe Generale SA which said Britain's biggest retailer can no longer be perceived as a ``safe haven'' stock.

WSP Group Plc (WSH LN) increased 16.5 pence, or 5.7 percent, to 305. The engineering company that helped design New York's Freedom Tower said it is confident full-year results will meet its forecasts.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.