LONDON (Reuters) - FTSE edged lower on Monday, weighed down by a slump in Petrofac after it predicted low net profits, but M&A talk kept it near a two-month high.
BT added 14.1p to 394.1p after confirming reports it was in talks with two mobile phone companies about a multi-million pound deal.
The Bank of England has published terms of reference for a review into a systems outage last month which saw UK borrowers unable to access mortgages.
Fortnum & Mason, the luxury food and gift retailer, has reported its highest profits in its 307-year history with its first new stores in hundreds of years contributing to a doubling of profits.
Petrofac has warned investors that a �difficult period� involving troubled North Sea projects and lower oil prices is likely to reduce its net profit to $500m next year, 25 per cent lower than analysts' consensus expectations of $675m.