[R]1:00PM New York, 6:00PM London – Whitbred surged 7% after it reported 5.7% rise in sales. Royal Bank of Scotland reported second half profit increased 6%.[/R]

Stocks in London fell after Rentokil Initial chief executive Doug Flynn said today earnings at its parcel delivery unit will fall due to poor management and low orders.

Market Sentiment

In London trading FTSE 100 stocks declined 1.82% or 110.8 to 5,965.70.

Of the 102 FTSE 100 stocks 8 rose, 93 fell, and 1 was unchanged. Whitbread Plc led the advancers in the FTSE 100 stocks with a rise of 7.02% after reporting revenue increase of 5.7% at outlets open at least a year in the 50 weeks ended February 14.

Rentokil warns on earnings

Bloomberg news reported today that Rentokil Initial Plc chief executive Doug Flynn said in a conference call that earnings in 2008 will fall as a result of poor management and lost orders at its parcel-delivery unit City Link.

City Link reported that fourth quarter earnings fell 60%. According to Flynn, City Link had an unprofitable January.

Xstrata rejects Vale offer

The Financial Times reported today that Vale’s $85 billion takeover bid for Xstrata was on the brink of collapse yesterday after Glencore, which has 35% equity in the miner, demanded a significant extension of the lucrative marketing rights to commodities, including coal and nickel. Glencore is looking to expand its marketing rights to commodities produced by mines in Brazil and under the control of Vale. Vale management and Glencore were unable to agree the restructuring of the commercial agreements.

Vale, which has two classes of shares, would have needed Glencore to accept preference shares, which have fewer rights than its ordinary shares to complete the deal.

The difference in the value of the two miners share groups was crucial to the bid’s structure since the offer was about 40% cash and 60% equity.

Gainers & Losers

Whitbread Plc led advancers in the FTSE 100 stocks with a rise of 7.01% followed by increases in Aviva Plc of 0.98%, in Enterprise Inns of 0.82%, in Antofagasta of Plc of 0.78%, and in Vedanta Resources of 0.41%.

Whitbread Plc gained after reporting revenue rise of 5.7% at outlets open at least a year in the 50 weeks ended February 14, adding the company is planning to cut costs by £25 million a year.

Enterprise Inns rose after Morgan Stanley raised its rating to ``overweight'''' from ``equal-weight''''.

Antofagasta and Vedanta Resources rose as metal prices continued to rise on record lows in the U.S. dollar.

Rentokil Initial led decliners in the FTSE 100 stocks with a drop of 23.23% followed by losses in Yell Group of 11.17%, in London Stock Exchange of 5.53%, in Intercontinental of 4.90%, and Alliance & Leicester of 4.88%.

Rentokil Initial dropped after the company warned that profit at its parcel-delivery unit City Link will fall on lost orders and poor management.

Financial stocks fell as well. Barclays shed 3.75% and HBOS Plc declined 3.35%.