Business

Centrica shares dive 10% on fund raising move

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(Close): Shares in British Gas owner Centrica sank nearly 10% after it announced plans to raise more capital through a share sale.

Centrica said it would sell 350 million shares, worth about £770m, partly to fund acquisitions and partly to pay down debt. Centrica shares fell 22.60p to 208.50p.

The FTSE 100 index closed up 5.23 points at 6,117.25.

BT shares rose 2.6% after the telecoms group reported a 15% rise in profits.

The company also announced that it would spend £6bn over the next three years to roll out faster broadband and mobile phone services.

Rolls-Royce fell 2.3% after the engineering group's latest update. Rolls said its outlook for the year as a whole was unchanged, but added that 2016 continued to be a "challenging year".

Shares in Morrisons rose 2.4% after the supermarket group reported a rise in sales for the second quarter in a row.

On the currency markets, the pound was unchanged against the dollar at $1.4496, but rose 0.7% against the euro to €1.2708.

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