August 28, 2019 / 7:38 AM / 23 days ago

Big tobacco, recession worries push FTSE 100 lower

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* FTSE 100 down 0.3%, FTSE 250 down 0.5%

* BAT, Imperial Brands dip on Philip Morris-Altria merger talks

* BP gains after divestment plans

Aug 28 (Reuters) - London’s main index dipped on Wednesday as tobacco giants fell after American rivals Philip Morris and Altria confirmed merger talks, while a deeper inversion of the U.S. treasury yield rekindled fears of a global recession.

The FTSE 100 slipped 0.3%, down for the fourth straight session, while the midcap index inched 0.5% lower by 0710 GMT, after getting a boost in the previous session from the opposition parties pledge to avert a no-deal Brexit.

British American Tobacco and Imperial Brands were lower by 1% and 2%, respectively, after news overnight that Philip Morris and Altria were in talks to reunite.

Losses were limited by a 1.1% rise in BP after the British oil major announced a deal to sell all its Alaskan properties for $5.6 billion to privately held Hilcorp Energy.

Small-cap tour operator Thomas Cook tumbled 15% after a substantial agreement on terms of a rescue package, which Jefferies analysts said could lead to the company’s shares being de-listed. (Reporting by Muvija M and Shashwat Awasthi in Bengaluru; Editing by Sriraj Kalluvila)

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