It will splash out around pounds 250m for C-T and could then move for William Hill the betting chain owned

It will splash out around pounds 250m for C-T and could then move for William Hill, the betting chain owned by the stricken Brent Walker, or even strike out at Ladbroke, the betting and hotel group.It is already relatively lightly borrowed. If it needs to top up its cash resources it could sell freeholds of some of its Holiday Inn hotels.To add to the air of expectation there is talk Bass plans an investment presentation in the next few weeks.The stock market managed to recover a little of its recent falls, gaining 16 points to 3,695.5 although the supporting FT-SE 250 index was again in ragged retreat.If anything, shares underlined their growing independence from New York As US shares turned red they held their gains. They have largely ignored New York for some time although there is no doubt a sharp American decline would have a savage impact.By staging a modest rally Footsie managed to avoid the embarrassment of seven consecutive falls, a slide which would be regarded as a particularly sad omen.Tomkins was the best performing blue chip, up 13p to 249p as its acquisition of the US Gates Corporation was cleared and it forecast profits of more than pounds 320m and a 9.95p year's dividend.Grand Metropolitan continued to draw strength from hopes of corporate activity, up 6p at 425p and BSkyB helped by SBC Warburg support added 12p to 434p.Shell rose 9p to 940p following a positive New York investment presentation. They now yield 7.25 per cent.It appears Whitehall is demanding Bass should reduce its pubs estate and undertake to sell breweries and some brands before agreeing the C- T takeover.At least one hurdle has been cleared.

It seems Bass has won over Carlsberg of Denmark which has 50 per cent of C-T. The Danes are prepared to exchange their half share for a stake in the brewing division Bass will create.Bass is gearing for a round of corporate action. A few years ago it lost pounds 147m through foreign exchange bungling; it then took a position in the Mexican market just as the peso collapsed and has struggled with its brewing and spirit operations.The market had been hoping it would execute a speedy sale of C-T and new chairman Sir Christopher Hogg would divide the group into two, retailing and spirits.But, as the negotiations drag on and Whitehall takes an increasing interest in the brewing deal, Allied's shares are becoming increasingly friendless. Shares of Allied Domecq, the drinks group, slithered to a new low on talk its attempts to extricate itself from brewing were encountering increasing difficulties. The price lost 2p to 453p; it was 556p earlier this year and 664p two years ago. Bass, the leading contender to buy Allied's 50 per cent stake in the Carlsberg Tetley brewing operation, also weakened - 5p to 802p, only 36p from the all-time high.Allied has been hit by a series of mishaps.

We came to the conclusion that we needed much greater resources to maintain and expand our expertise."An outline agreement to merge with Liffe was reached last October, after discussions with other potential partners, including London's International Petroleum Exchange, ended.The merged market will be at an expanded floor in Liffe's building by Cannon Street station in the City, or split between that building and the old Stock Exchange floor in Threadneedle Street, which Liffe is to take over from the autumn.If the markets both fit into Liffe's present floor, the Stock Exchange floor may be used as an emergency back-up.Mr Hodson made clear Liffe did not expect to make any radical changes as a result of lessons learnt from the Sumitomo losses on the London Metal Exchange.Mr Hodson said 40 recommendations were made last summer by a global task force on the best practice for futures and options regulation."We looked at our practices in the light of those recommendations and we scored an 'A' star," he said.. But we have had three successful years that have enabled the LCE to think about long-term planning. Of the LCE's 44 floor members, 29 are from the same organisations as Liffe members.Robin Woodhead, chief executive of the LCE - who will remain as a consultant for six months after the merger - said, "Four years ago the LCE had a very difficult time. Plans for the merged market include the development of trading in wheat futures across Europe to take advantage of the expected reductions in support for farmers under the Common Agricultural Policy, which will increase the demand for hedging. Daniel Hodgson, chief executive of Liffe - the market famous for its open outcry dealings and the bright jackets worn by floor traders - said development of wheat futures would be complex.This would be because of the variations in the types of wheat required by bakers in different countries, "but there is no doubt it is an opportunity for the exchange and it should have pan-European appeal".The merger is through a pounds 10.3m offer by Liffe - the London International Futures and Options Exchange - for the London Commodity Exchange, which has traded coffee, cocoa and sugar since 1954.The offer will be accompanied by an invitation to members of both exchanges to subscribe for new shares in Liffe at a price of pounds 15,000 each, which will give a right to trade commodities on the merged market. Sales of writing instruments edged 1.4 per cent higher.Sales to the Fast East rose by 8.3 per cent..