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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 (NYSE:PM) and
Altria (NYSE:MO) confirmed merger talks, while a deeper inversion of the
U.S. treasury yield rekindled fears of a global recession.
The FTSE 100 .FTSE slipped 0.3%, down for the fourth
straight session, while the midcap index .FTMC 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 BATS.L and Imperial Brands
IMB.L were lower by 1% and 2%, respectively, after news
overnight that Philip Morris PM.N and Altria MO.N were in
talks to reunite. Losses were limited by a 1.1% rise in BP BP.L 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 TCG.L 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.