In early trading the FTSE 100 has slipped 29.5 points, or 0.48%, to 6,162.5, with broadcaster ITV one of the biggest losers so far.
The terrestrial TV channel has slipped 1.3% to 114.25p, on news BSkyB has bought a 17.9% stake in the company raising fears it could stop a proposed £5bn takeover by NTL.
Amvescap is also off to a poor start with a drop of 1.51% to 589p, closely followed by Yell Group which has slipped 1.3% to 570p, while BSkyB has also dropped 1.21% to 530.5p.
Home Retail is posting the biggest gains so far with a rise of 2.28% to 426p, closely followed by miner Antofagasta which has climbed 2.02% to 467p, while insurer Legal & General has climbed 0.83% to 151.25p.
In Japan the Nikkei 225 Stock Average lost 365.79, or 2.3%, to 15,725.94 at the 3pm close as stocks fell by the most in four months.
Mitsubishi UFJ, Japan's largest bank by assets, declined 40,000 yen, or 2.8%, to 1.38 million, while Mizuho Financial Group, the nation's second biggest, dropped 26,000 yen, or 3.1%, to 823,000.
Toyota Motor, the world's second-largest carmaker by value, dropped 300 yen, or 4.1%, to 6,960, Advantest, the biggest maker of memory-chip testing equipment in the world, slid 250 yen, or 4.1%, to 5,870, and Canon, the world's No. 1 digital camera maker, declined 190 yen, or 3%, to 6,120.
Inpex Holdings, Japan's largest oil explorer, slid 32,000 yen, or 3.4%, to 902,000, its smaller rival AOC Holdings dropped 68 yen, or 3.4%, to 1,927, and Japan Petroleum Exploration declined 100 yen, or 1.6%, to 6,360.
Sanyo Electric, a Japanese electronics maker, slumped 26 yen, or 13%, to 179, while Rengo, a maker of paperboard containers, jumped 41 yen, or 6.4%, to 682, and Nippon Paper, Japan's second-largest paper maker by sales, fell 4,000 yen, or 1%, to 414,000.
In the US on Friday the Dow Jones Industrial Average closed at a new high, with a rise of 36.74 points, or 0.3%, to end at 12,342.56.
AT&T led the gains with a rise of 2.47% to $33.20, closely followed by Altria Group which climbed 1.72% to $85.01, while drug company Pfizer added 1.68% to $27.21, and 3M Company gained 1.38% to $81.40.
On the downside Intel was the biggest drag on the index with a fall of 1.03% to $22.10, closely followed by United Technologies which slipped 1% to $66.09, while Hewlett-Packard dropped 0.9% to $39.77.IFAonline
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