European Midday Update: Markets Rise Despite Friday's Wall Street Drop

LONDON -- Given Wall Street's wretched performance Friday, it came as no great shock that London's markets struggled from the start. By midmorning the FTSE 100 was down 90.6 to 6378.4. The Techmark index of tech stocks was down 24.1 to 3730.4.

Most of Monday morning's action was in the media sector. All eyes are on United News & Media (UNEWY Quote) as the market hears that Granada Media is preparing a hostile bid for the company at 12 per share ($18.24) if the company refuses to sell its main TV assets to Granada. Granada is also understood to have ruled out making an offer for Carlton Communications (CCTVY Quote), the U.K.'s other major TV group.

United News' share price roared up to 995p in early trading, but slipped back to stand 14p higher on balance at 972. Carlton Communications shed 12p to 790 and Granada Media moved up 5p to 582.

In the pharmaceutical sector, investors appeared nervous ahead of earnings statements from Smithkline Beecham (SBH Quote) (Tuesday) and Glaxo Wellcome (GLX Quote) (Thursday). The merger partners are both under pressure, with Smithkline down 19p at 785 and Glaxo 49p down at 17.50. ...