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LONDON -- Wireless-related stocks dragged down the London market Tuesday.

British Telecom


has reportedly had a bust-up with its partners in the Italian


consortium, and



is suffering from the

postponement of the float of

Verizon Wireless

, its venture with

Verizon Communications



Add in a 5.5% slump in shares of

Philips Electronics


, the European giant electronics and semiconductor stock, after it said that third-quarter income from its mobile-phone unit was zero and cut its forecast for mobile-phone sales this year to 14 million from 18 million. It all looks very uninviting.

By midday, the

FTSE 100

was down 58 points to 6227.50 and the

Techmark 100

was 68 points lower to 3379.

As a result of the reports, BT found itself marked down below 700p as its shares fell 24.5p to 696 ($9.95) and Vodafone handed back 6.75p of its recent gains as it slipped to 256.

But the FTSE 100's biggest loser so far is IT-services company


. The sector has come under pressure on talk that two brokers have downgraded CMG. The company's shares have fallen 9.3% to

11.99, but some phlegmatic sources are unfazed, suggesting that the two downgrades have come from brokers that may have been overenthusiastic in their previous forecasts.

Nevertheless, there has been a definite knock-on effect.


, which announced a joint venture with leading insurers to create an Internet portal, fell 43p to 677, while


dropped 49p to 920.

On the Continent it was a different story. The


in Paris was up 33 points to 6121 and the

Xetra Dax

in Frankfurt was up 8 to 6635.

Although Philips was down 1.80 euros to 43.70 ($37.15), the stocks it dragged down in its wake --






-- managed to recover. By midday, Nokia was up 0.25 euro to 39.25 and Alcatel was up 1.10 euros to 77.10.