Kingfisher, the owner of B&Q, was the top performer of the blue chips this morning on talk of a private equity bid at 195p.

The retailer, often seen as a potential target for Home Depot of the US, climbed 6 per cent to 156p on strong volume against a market that was up only 0.6 per cent or 36.7 at 6241.4. In March new chief executive Ian Cheshire had to slash the dividend and cut capital expenditure as earnings were deteriorating amid dire demand.

Its peer Home Retail Group, owner of Argos and Homebase, was the number two performer up 4 per cent at 276.5p.

DSG International gained 10 per cent to 77.5p and Kesa was up 7 per cent to 231.25p on talk that Best Buy of the US, having bought half of Carphone Warehouse's mobile stores could look at buying DSG's Currys or the Comet outlets belonging to Kesa.

DSG has full year results Thursday and strategic plans of new chief executive John Browett who is expected to undertake radical surgery on the UK outlets Currys and PC World, will be unveiled.

Meanwhile in the FTSE 250, Chloride the former battery maker that now provides emergency power for companies, soared 23 per cent to 255.5p after saying it had rebuffed a 255p takeover approach.

Centrica, owner of British Gas, rose 2.3 per cent to 294.25p as it showed it was benefiting for the surging wholesale gas price and was likely to raise retail energy prices again.

Kazakhmys was the top faller, down 2.6 per cent to £17.40 continuing Friday losses after it revealed that ENRC had made a low ball £15.50 bid well below the current share price. ENRC meanwhile, gained 3 per cent to £13.47 as speculation continued that Kazakhmys could turn predator and bid for it. ENRC has until this Friday to make a firm offer or walk away. Lehmans analysts said: "We believe ENRC may be making a very low initial offer to pressure Kazakhmys's share price to demonstrate that the current market price of its shrs includes a substantial takeout premium."

Barclays was down 2 per cent 442.75p as Citigroup cut its target price to 350p from 400p warning of weaker income at Barclays Capital and rising loan impairment losses across the group. The bank updates on trading on Thursday and Tom Rayner said he expected the update would trigger "a wave of earnings downgrades."

He forecasts a £6 - £12 billion rights issue. "If Barclays decides to have a rights issue, this is likely to coincide with a more aggressive approach to asset valuation.

British Energy lost 1 per cent to 694.5p as it appeared that only EDF had made a bid for the company.

Dana Petroleum rose 5.5 per cent to a record high of £18.78 after announcing it had found oil in the North Sea at East Rinnes, just a few days after discoving an oil field nearby at West Rinnes.

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