U.K. stocks fell, led by BHP Billiton Ltd., the world’s largest mining company, and Rio Tinto Group as metal prices retreated.

Provident Financial Plc, a U.K. lender to lower-income households, dropped after saying 2007 pretax profit before items will fall. Arriva Plc declined after saying 2007 earnings at its rail division will be affected by the cost of bidding for new train franchises.

The benchmark FTSE 100 Index dropped 95.7, or 1.5 percent, to 6,301.3 at 8:59 a.m. in London. The FTSE All-Share Index retreated 49.94, or 1.5 percent, to 3,199.3. Ireland’s ISEQ Index lost 193.5, or 2.7 percent, to 6,898.18.

BHP fell 2.5 percent to 1,506 pence, while Rio Tinto lost 2.2 percent to 5,062 pence. Vedanta Resources Plc, India’s largest copper producer, dropped 3.3 percent to 2,040 pence.

Copper, lead, nickel, tin, zinc, prices fell in London.

Provident Financial lost 2.2 percent to 790.5 pence. Pretax profit before one-time items in 2007 will be about 115.3 million pounds, down from 139.2 million pounds a year ago, Chief Executive Officer Peter Crook said in an interview today.

The following stocks also rose or fell in the U.K. markets. Stock symbols are in parentheses.

U.K. Companies:

Anite Plc (AIE LN), the U.K. producer of license plate recognition software for British police, lost 2.5 pence, or 5.4 percent, to 43.5, after saying first-half profit fell 42 percent on “disappointing” sales at its Wireless handset testing unit.

Brixton Plc (BXTN LN) dropped 9.5 pence, or 3.5 percent, to 266. UBS AG cut its price estimate on the stock of the U.K.’s largest owner of industrial buildings to 400 pence from 480.

Collins Stewart Plc (CLST LN) added 8.5 pence, or 4.7 percent, to 189. The U.K. stockbroker is likely to confirm today that it’s had preliminary talks about being acquired by Japan’s Nomura Holdings Inc., the London-based Times reported, without saying where it got the information.

Elan Corp. (ELA LN) fell 17 cents, or 1.1 percent, to 15.69 euros. Goldman, Sachs & Co. resumed coverage with a “neutral” recommendation on the stock of the Irish drugmaker that developed the Tysabri multiple sclerosis treatment and a price estimate of 29 euros.

GlaxoSmithKline Plc (GSK LN) fell 18 pence, or 1.4 percent, to 1,305. The world’s second-largest drugmaker said its Cervarix cervical cancer vaccine will be delayed in the U.S. by regulator’s questions.

Informa Plc (INF LN) retreated 9.25 pence, or 2.2 percent, to 418.25. The publisher of the Lloyd’s List maritime newspaper said it sees “full-year results in line with forecasts,” in a statement issued today.

Rexam Plc (REX LN) lost 8.5 pence, or 2 percent, to 415.5. Citigroup Inc. cut its recommendation on the stock of the world’s biggest maker of beverage cans to “hold” from “buy.”

Rising oil prices “are likely to be a drag on profits growth in 2008 and will make for a more difficult trading in plastic packing if demand falters,” London-based analyst Adrian Cattley wrote in a note to investors today.

Sports Direct International Plc (SPD LN) lost 1.5 pence, or 1.6 percent, to 93. The U.K.’s largest sporting-goods retailer will appoint Michael Ashley, who controls 70 percent of the company, as chairman this week, the Sunday Times reported, without citing anyone.

source : bloomberg