The FTSE 100 Index fell 10.90 points, or 0.2%, to 5,681 points today, led by utilities.
National Grid dropped 0.67% to 596p, Scottish Power declined 1.20% to 576.50p and Severn Trent dropped 0.59% to 1,184p.
Cairn Energy fell 0.72% to 2,056p and BP dropped 1.22% to 609.50p on the back of reports crude production in Iraq remains strong.
Cadbury Schweppes fell 1.16% to 512p on the withdrawal of a series of its products after the discovery of minute traces of salmonella at one of its chocolate factories.
Meanwhile, Xstrata gained 0.88% to 1,955p following its hostile takeover approach for Falconbridge.
Vedanta also climbed 0.85% to 1,312p, while BHP Billiton rose 0.30% to 997p and Anglo American gained 1.42% to 2,138p.
In the US, the Dow Jones industrial average is up 18.33 points, or 0.17%, at 11,007.42 points as a wave of multibillion dollar takeovers outweigh concerns about this week's policy-setting meeting of the Federal Reserve.
Shares of Pfizer are leading advances, up 2% to $23.08 after the drug maker reached a definitive agreement to sell its consumer health-care arm for $16.6bn to Johnson & Johnson.
Johnson & Johnson shares are the biggest drag on the Dow, down 1.9% to $60.15 after it forecast its proposed acquisition of the Pfizer unit to pressure earnings through 2008.
Phelps Dodge has said it will buy Inco and Falconbridge for about $40bn in a deal to create a top global copper and nickel miner. Phelps Dodge shares have fallen 9.6% to $75.IFAonline
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