LONDON -- The hot weather in London is not being translated into activity in the stock market and in the case of many leading stocks it was less a case of a slow start than a nonstart. After 30 minutes of trading, just over half of the FTSE 100's stocks still had not traded, and by midmorning the index was down 38.2 points at 6,245.3 and the Techmark was showing a fall of 0.3 points at 3,462.8.

Some takeover news did add some spice to the market.

Granada Group

jumped 27p after

TSC UK's

weekend reports that the media-leisure group is in merger talks with

Compass Group

(CMSGY)

were confirmed Monday morning. By midmorning, Granada was 10p higher at 643 ($9.72). Compass shares fell 88p to 814 on the news.

The expanded group is expected to split almost immediately into Granada Media and a nonmedia side including Compass and the hotel group Forte.

Thomson Travel

climbed 10p to 172.5 after its board agreed to recommend a cash offer from

Pressaug

, Europe's largest package tour operator. This values Thomson at

1.8 billion, and the shares at 180p.

Airport operator

BAA

(BAAPY)

failed to respond to news of a 10.2% rise in domestic travel in the year to April and reports that it has almost secured a contract to run the services at Logan Airport in Massachusetts. The shares were down 2.5p to 484.

Tech stocks were something of a mixed bag.

Staffware

rose 50p to

19.00, while

Bookham Technology

(BKHM)

lost 137p to

38.00 ahead of first-quarter results on Tuesday.

Europe's other stock markets were also lower, with the

Xetra Dax

in Frankfurt down 43.26 at 7226.02 and the

CAC 40

in Paris 25.24 lower at 6424.03. The Neuer Markt's

Nemax 50

index was down 63.05 at 6908.61.

Big German tech shares were mixed, with

Epcos

(EPC) - Get Report

up 1.50 euros to 137.00 ($125.89) and

Siemens

(SMWAY)

up 0.28 euros at 155.38, but software maker

SAP

(SAP) - Get Report

fell 10.13 euros to 602.88.

Preussag

was one of the day's biggest gainers in Frankfurt, after the U.K.'s

Thompson Travel Group

accepted it's takeover bid. Midday, Preussag was up 0.61 euros at 43.75. Merging utilities

Veba

(VEB)

and

Viag

(VGAVY)

were down 0.61 euros at 41.08 and 0.13 euros at 22.07 respectively, after announcing their chemical units Degussa-Huels and SKW Trostberg would also merge.

Major European telco shares were mostly lower.

France Telecom

(FTE)

was down 1.30 euros at 156.00 after announcing it might soon carry out a capital increase. Dax heavyweight

Deutsche Telekom

(DT) - Get Report

was down 0.64 euros at 64.95 and

Telefonica

(TEF) - Get Report

fell 0.12 euros to 23.90.