* FTSE 100 closes up 0.1 pct at 6,682.48 points
* Weir gains on takeover talk
* Meggitt slumps after cutting outlook
By Sudip Kar-Gupta
LONDON, Aug 5 Britain's top equity index eked
out a gain on Tuesday, as speculation about a takeover lifted
engineering group Weir and a broker upgrade buoyed the
quality-control and safety-services company Intertek.
The blue-chip FTSE 100 index closed up 0.1 percent,
or 4.96 points, at 6,682.48 points.
Weir rose 2 percent, the biggest FTSE gain in percentage
terms. The company ended its corporate broker agreement with
Bank of America Merrill Lynch on Monday, suggesting it may be
targeted by bigger rivals for a takeover. Weir said the bank's
appointment by another company, which Weir did not name, created
a conflict of interest.
Intertek rose 1.8 percent after Numis raised its rating on
the company to "add" from "hold." A day earlier, Intertek had
reported higher interim profits and dividend.
However, aircraft parts supplier Meggitt fell 4.7
percent after Meggitt lowered its full-year expectations for
organic revenue growth due to bigger-than-expected declines in
U.S. military spending.
The FTSE fell 1.7 percent last week, as violence in Gaza and
Ukraine weighed on markets globally.
Many investors still expect the
FTSE to reach a record high 7,000 later in 2014, as Britain's
economy and UK corporate profits rally. Others were more
Darren Easton, director of trading at Logic Investments,
said he would look to sell positions on the FTSE if it rose to
6,740 points. Central Markets' trading analyst Joe Neighbour
also backed selling into rallies for a profit.
"We've decided it would be prudent to sell into strength,"
(Additional reporting by Alistair Smout; Editing by Larry King)