LONDON (ShareCast) - London’s leading index has recovered to breakeven ahead of what is expected to be a brighter start in the US, with miners and ICI heading the pack over here.

ICI is top riser after it a rejected a higher offer of 650p per share from Akzo Nobel, the Dutch group says. Akzo, which joined with German group Henkel for the new bid, said ICI considered that the offer did not reflect its full value. Akzo made an indicative offer in June worth 600p per share.

Stronger metal prices mean mining heavyweights dominate the blue chip leader board, with Vedanta Resources, Rio Tinto, Antofagasta and BHP Billiton standing out.

HSBC has done its bit to keep markets afloat by releasing better-than-expected interim profits of more than $14bn. The bad debt charge, though, went up $6.35bn, most of it relating to the US sub-prime market.

Drugs group Shire was in the blue thanks to a Merrill Lynch upgrade to ‘buy’ from ‘neutral’ and 1,370p price target. Amongst the midcaps, Lehman Brothers upgraded buy-to–let mortgage specialist Bradford & Bingley to 'overweight' from 'equal-weight'.

Confectionery group Cadbury Schweppes leads the fallers as it continues to suffer from last week’s news that the sale of its Americas Beverages drinks business has been delayed due to the volatile debt market.

General financials are also weighing on the market with the likes of 3i Group and Man Group lower.

Elsewhere, Dutch bank ABN Amro has withdrawn its backing of a takeover bid from Barclays. ABN's boards -- the supervisory board and managing board -- said they were currently not in a position to recommend the offer from Barclays or the competing offer from the Royal Bank of Scotland consortium. Barclays said it would continue with its offer regardless.

FT owner Pearson has raised its full -year guidance after underlying sales rose by 6% to £1.7bn in the first half of 2007. Adjusted profit before tax was up to £54m from £31m. Guidance for full-year sales is raised to 5%-7% underlying growth in professional education and to 10%-12% growth in IDC. There were strong performances in all businesses in the first half, it added.

Away from Footsie, food group Cranswick reported sales in the first quarter increased by 25% compared with the same period last year to £151m. Food sales showed an increase of 26% of which 22% reflects organic growth. The overall margin performance is in line with management's expectations.

Banknote printer De La Rue confirmed this morning that it is being investigated by the police following allegations of corruption. “We believe this is in response to allegations of corruption made by a former employee against whom the company has obtained a judgement for the recovery of monies stolen from it,” De La Rue said, adding it believed the allegations are false.

Insurer Beazley toasted record half year profits Monday, more than doubling from the same period last year. Profit before tax for the six months to 30 June leapt to £60.2m from £28.3m a year earlier. The combined ratio, which measures claims and costs as a percentage of premiums, was better at 87% versus 90% in 2006.

Menswear retailer Moss Bros saw first half like-for-like sales rise by 2.5% thanks to improved sales in the last ten weeks but said it is planning for the trading environment to remain demanding.

Support services firm Spice said it has agreed to take over Revenue Assurance in a cash and share deal valuing the group at about £102.9m. Revenue shareholders will get £125.50 in cash and 13.09 Spice shares for every 100 shares they hold in the utility bills specialist.

French IT services provider Groupe Steria has agreed terms of a recommended proposal to buy outsourcing and IT group Xansa for 130p a share, valuing the UK firm at around £472m.

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