June 18 (Bloomberg) -- U.K. stocks including Vodafone Group Plc, the world's largest mobile-phone company, fell.

Imperial Chemicals Industries Plc paced advancing shares. The U.K. maker of Dulux and Glidden paints rejected a 7.2 billion-pound ($14.2 billion) bid from Akzo Nobel NV of the Netherlands as too low. Shares of Prudential Plc also gained.

The benchmark FTSE 100 Index lost 3, or less than 0.1 percent, to 6729.40 in London at 11:28 a.m. The FTSE All-Share Index retreated less than 0.1 percent to 3477.48. Ireland's ISEQ Index gained 0.2 percent to 9680.86.

Vodafone fell 0.8 percent to 161.9. The newspaper El Pais reported that Vodafone is considering making an offer for the Spanish division of Sweden's Tele2 AB, citing unidentified people involved in the negotiations.

ICI jumped 17 percent to 641. Akzo, the world's largest maker of paints and coatings, offered 600 pence for each share of London-based ICI, the U.K. company said in a statement today. That's 9.3 percent more than Friday's closing price. ICI said the approach ``significantly undervalues'' the business.

Prudential, Britain's second-largest insurer, advanced 1.1 percent to 761.5. Prudential's Indian businesses could be worth 1.5 billion pounds, the Sunday Telegraph reported June 17, citing ICICI Bank Ltd.'s valuation of its joint ventures with the U.K. insurer.

Pearson Plc decreased 1 percent to 864.5. The publisher of the Financial Times is looking for partners to make an offer for Dow Jones & Co., the Wall Street Journal reported.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

U.K. Companies:

BHP Billiton (BLT LN) increased 16 pence, or 1.2 percent, to 1374. The world's largest mining company would neither deny nor confirm a report in the Times of London that it was studying a $40 billion bid for U.S. aluminum producer Alcoa Inc. BHP doesn't comment on rumor or speculation, spokeswoman Samantha Evans said.

Cattles Plc (CTT LN) gained 21.75 pence, or 5.4 percent, to 422.5. The provider of credit to low-income households in the U.K. said first-half earnings are ahead of management expectations, helped by an increase in loans to consumers and businesses.

Eckoh Plc (ECK LN) advanced 0.75 pence, or 7.9 percent, to 10.25. The U.K. maker of speech-recognition software won a three- year contract from United Utilities Plc, the U.K.'s largest publicly traded water company, for a telephone information service.

EMI Group Plc (EMI LN) added 3.5 pence, or 1.3 percent, to 276.5. Warner Music Group Corp. is preparing a 2.5 billion pound bid for EMI that would trump an accepted offer from private equity firm Terra Firma Capital Partners, the Financial Mail reported, without saying where it got the information.

GKN Plc (GKN LN) gained 18.5 pence, or 4.7 percent, to 416.25. Lehman Brothers Holdings Inc. raised its recommendation on the U.K. maker of car and plane parts to ``overweight'' from ``underweight.''

``We believe that GKN is set for a prolonged period of above-market growth and margin expansion,'' the bank wrote in a research note.

Jessops Plc (JSP LN) soared 2.75 pence, or 17 percent, to 19. The U.K. specialist photography retailer may receive a takeover offer from Merchant Equity Partners LLP, the private equity firm that owns furniture retailer MFI, the Sunday Telegraph said, citing an unidentified ``private equity source.''

PartyGaming Plc (PRTY LN) rose 1.25 pence, or 3.2 percent, to 40.25. Deutsche Bank AG raised its recommendation on the world's biggest Internet poker company to ``buy'' from ``hold.''

``Having stabilized the business after pulling out of the U.S., PartyGaming has plenty of strategic initiatives in progress to deliver growth in 2007 and beyond,'' the bank wrote in a research note.

Rolls-Royce Group Plc (RR/ LN) advanced 9.25 pence, or 1.7 percent, to 556. The U.K. maker of airplane engines may announce an order from Qatar Airways worth at least 1 billion pounds, the Sunday Telegraph reported, without saying where it got the information.

SABMiller Plc (SAB LN) gained 6 pence, or 0.5 percent, to 1267. Merrill Lynch & Co. raised its recommendation on the brewer of Peroni Nastro Azzurro lager to ``buy'' from ``neutral,'' citing the company's ``strong positions in emerging markets, where the beer profit pools are expected to grow.''

J Sainsbury Plc (SBRY LN) added 7 pence, or 1.2 percent, to 597. Delta (Two) Ltd., a Qatar-backed investment group that has a 25 percent stake in Sainsbury, is planning a full bid for the U.K. supermarket chain, the Sunday Telegraph said, citing people familiar with the fund's plans.

Scottish & Newcastle Plc (SCTN LN) added 6 pence, or 0.9 percent, to 641.5. Merrill Lynch raised its recommendation on the U.K.'s largest brewer to ``buy'' from ``neutral.''

Tullow Oil Plc (TLW LN) climbed 40.25 pence, or 9.8 percent, to 449.25. The explorer for hydrocarbons on three continents said it discovered oil at its Mahogany-1 exploration well offshore Ghana.

Irish Companies:

Ryanair Holdings Plc (RYA ID) gained 4 cents, or 0.8 percent, to 5.20 euros. Europe's largest low-cost airline plans to resume flights at its base near Brussels after three days of cancellations due to a strike by airport security staff.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net

Last Updated: June 18, 2007 06:30 EDT