U.K. stocks fell, with the benchmark FTSE 100 Index (UKX) extending last week’s declines, amid concern Germany is preparing for Greece to default. BHP Billiton Ltd. (BHP) and Rio Tinto Group fell more than 3 percent as metals retreated in London. Charter International Plc (CHTR) jumped 6.6 percent as Colfax Corp. plans to buy the company for 1.53 billion pounds ($2.4 billion). The FTSE 100 lost 123, or 2.4 percent, to 5,091.65 at 12:12 p.m. in London. The benchmark retreated for the first week in three last week amid concern policy makers won’t be able to stop Europe’s sovereign debt crisis from growing and damaging the economic recovery. The FTSE All-Share Index and Ireland’s ISEQ Index lost 2.2 percent and 2.2 percent, respectively. Officials in Chancellor Angela Merkel’s government in Germany are debating how to shore up German banks should Greece fail to meet the budget-cutting terms of its aid package, three coalition officials said on Sept. 9. BNP Paribas SA, Societe Generale SA and Credit Agricole SA may have their ratings cut by Moody’s this week because of their holdings of the Mediterranean nation’s debt, two people with knowledge of the matter said. Greek Prime Minister George Papandreou, vowing to avoid a default and keep the country in the euro, approved new measures to help plug a budget gap as resistance builds at home and in Europe to extending more aid to the European Union’s most indebted nation. BHP, Rio Tinto BHP, the world’s biggest mining company, sank 3 percent to 1,903 pence, while Rio Tinto, the second-biggest, decreased 3.2 percent to 3,451,5 pence. Aluminum, copper, lead, nickel, tin and zinc all fell on the London Metal Exchange today. Fresnillo Plc, the world’s largest primary silver producer, sank 6 percent to 2,022 pence as silver for immediate delivery fell for a second day. Charter International surged 6.6 percent to 857 pence, the highest price in three years. Shareholders will receive 730 pence a share in cash and 0.1241 new Colfax shares for each Charter equivalent, giving a total price of 910 pence, Colfax said in a statement. The offer is 48 percent higher than Charter’s closing price on June 28, the day prior to Melrose’s preliminary proposal. To contact the reporter on this story: Julie Cruz in Frankfurt at jcruz6@bloomberg.net To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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