EmailAs markets fell back on a number of factors, Vodafone lost ground following reports it could be interested in Liberty Global, which is Europe's biggest cable operator.
According to Bloomberg Vodafone said that Liberty - which owns Virgin Media - could be a good fit at the right price. Liberty, controlled by billionaire John Malone, is currently valued at around $33bn while Vodafone is worth around £50bn (87bn).
But investors seemed taken aback by the idea, worrying that the "right price" may be too high and sending Vodafone shares down 1.6p to 203.45p.
Overall the FTSE 100 finished 30.49 points lower at 6799.62. The fall accelerated in the afternoon after higher than expected US weekly unemployment claims, ahead of Wednesday's Federal Reserve meeting.
There was continuing uncertainty about the Scottish referendum, despite a new poll showing a majority against independence. The poll for the Daily Record helped Scottish linked shares recover some ground. Energy group SSE added 40p to £14.85, helped by RBC analysts raising their target price from £15 to £15.80.
Standard Life climbed 6p to 413.4p, Royal Bank of Scotland rose 3.8p to 346p and Lloyds Banking Group was lifted 0.85p to 74.08, despite both banks saying they might move their headquarters south of the border in the event of a yes vote.
Investors were also unsettled by the fact that new EU sanctions against Russia over its role in Ukraine were due to come into effect on Friday, while weaker than expected Chinese inflation figures rekindled fears about the country's economic growth. With China a key consumer of commodities, mining shares were lower, with Fresnillo falling 23p to 819p and Antofagasta down 12p at 767p.
Next fell 215p to £69.50 despite a 19.3% rise in first half profits to £324m and confirmation of its July guidance of a full year profit of £775m to £815m. But the figures, impressive as they were, came in slightly below some expectations, and the retailer said part of its strong performance had come from external factors - such as the improving economy, low interest rates and availability of credit - which may not last into next year.
But ITV added 4.4p to 216.8p after Credit Suisse moved its target price from 250p to 270p, with an outperform rating.
On a busy day for retail results, Argos and Homebase owner Home Retail dropped 13.6p to 174p after like for like sales came in below expectations.
Ashmore fell 17.9p or 5% to 327p as the emerging market money manager reported a 34% fall in full year profits to £87.3m, hit by currency fluctuations.
;