United Utilities and Severn Trent were among the sharpest fallers on Tuesday as the FTSE 100 retreated.

Freedom4 agrees double reverse takeover

Freedom4, the wireless network operator formerly known as Pipex, is expected to rejoin the market on Wednesday after agreeing a double reverse takeover.

The company is expected to complete a deal to buy Daisy Communications, a corporate telecoms company, and will regain control of Vialtus, Pipex’s former business unit. The group, chaired by Peter Dubens, was said to have raised about £75m at 4p a share.

The utilities were under pressure after JPMorgan advised caution. It said the record-high gilt issuance expected over the next year will cap performance of regulated utilities, which are treated as “bond proxies” because of their safe and secure dividends.