Alexon Group directors rebuffed attempts by chief executive John Osborn to buy the company, saying the offer - believed to be a little over 211.5p per share - undervalued it. The share price dipped 3p to 205p.
Sainsbury's stock also remained relatively stable, rising 2p to 518p, after former chairman Lord Sainsbury of Turville brought a 7.75% stake back under his control, fuelling speculation that he could sell shares if the mooted bid for the company from a consortium of private equity firms is made. However, industry insiders suggest that Lord Sainsbury is likely to follow management advice on the deal.
Things became rosier for sportswear retailers after confirmation that Sports World would go ahead with its £2 billion float. JD Sports saw stock rise 18.5p to 403.75p, while JJB Sports was unaffected by pending legal action over price fixing in 2000 and 2001, as shares rose 4p to 255.5p.
News that Tesco was to expand its non-food website Tesco Direct, adding about 2,000 more styles and launching a much bigger catalogue next month was met with almost no response from the City. Shares fell 1.75p to 436.5p.