The London equities markets were lower on Wednesday as the mining sector
declined and merger rumors swirled around a utility.

The FTSE 100 dropped 0.5 percent to 5,275.2, while the FTSE 250 fell a fraction to 7,704.5 on a volume of 2.6 billion shares traded.

In the mining sector, BHP Billiton lost 3.7 percent to 804p despite reporting record profits for the full year.

Elsewhere in the sector, Rio Tinto lost 3.4 percent to £19.67, Anglo American dropped 2.7 percent to £13.74, and Antofagasta fell by 2.4 percent to £14.56.

Electric and gas utility Centrica was the focus of merger rumors, with several companies said to be interested in acquiring the company.

Most of the talk focused on Norwegian company Norsk Hydro after it admitted to having engaged in talks with Centrica earlier in the year.

Other names that were raised as possible suitors were Russian company Gazprom, Royal Dutch Shell, Gaz de France, and BG Group.

Analysts debated which companies might actually be thinking about buying Centrica and whether there were even any talks going on. Centrica would not comment, but its shares gained 3.8 percent to 252 ¾p.

Trade in the utility was heavy at 106 million shares traded on the day.