FTSE unchanged as BA rises

By Michael Taylor

LONDON (Reuters) - Britain's leading shares ended flat on Thursday as British Airways soared on consolidation hopes, while Smith & Nephew weighed after an internal probe into its sales practices.

The FTSE 100 ended unchanged at 6,087.3 during a choppy session, light in volume, after hitting a high of 6,118.2.

With major continental European stock markets closed for May Day, the FTSEurofirst 300 of top European shares was unofficially up 0.1 percent at 1,339.02.

Leading the charge on the upside, airline British Airways added 7.3 percent after the airline said late on Wednesday it was in discussions with two of its largest U.S. rivals, American Airlines and Continental Airlines, which a source briefed on the matter said was about a potential alliance.

Miners were mostly in demand, with Kazakhmys up 2.1 percent after it said it aims to triple power output by 2014 at its new Ekibastuz coal-fired power plant, the largest in Kazakhstan.

Vague merger and acquisition chatter also buoyed the sector, with Xstrata and Anglo American rising between 2 and 2.2 percent.

Rexam advanced 4.4 percent after the company, the world's biggest drinks can maker, said first-quarter results were in line with its expectations at constant currencies, and that its outlook for the rest of the year remained unchanged.

Global news and information company Thomson Reuters Corp tacked on 3.3 percent after it posted first-quarter profits, forecast 2008 revenue growth of 6 to 8 percent and said it would reach a cost-savings target ahead of schedule.