By Holly Williams and Roger Baird, Press Association

The London market made modest gains today, although drinks giant and takeover target SABMiller saw its shares come under pressure after reports suggested it is likely to reject a £70 billion takeover offer.

The Peroni and Grolsch firm - which is in talks with suitor Anheuser-Busch InBev over a potential blockbuster deal - saw its shares fall almost 4% on fears that a deal that would mark the biggest ever takeover of a British company is unravelling.

The FTSE 100 Index was up 27.2 points at 6326.2, with commodity stocks leading the market.

Germany's Dax and France's Cac 40 were both up by around 1%. In New York the Dow Jones Industrial Average was flat in early trading.

Under-pressure trader and miner Glencore's dramatic rise in the previous session had helped the FTSE 100 jump 169 points on Monday, and after being lower earlier in the session it rose for the second day in a row.

The pound was up one cent against the US dollar at just above 1.52, and little changed against the euro at 1.35.

Glencore was up 2.9p at 118p, after rising 21% yesterday on reports that it is in talks to sell its agriculture unit, valued at around 10 billion US dollars (£6.6 billion).

Other mining stocks also rose, with Anglo American up 24.7p to 604.2p and Fresnillo 20p higher to 672.5p.

However, SAB was among the biggest FTSE 100 fallers, off 142p or more than 4% at 3622p.

The group said surging demand in emerging markets such as Africa and Latin America helped underlying net revenues lift 6% and sales by volume rise by 2% over the three months to the end of September.

But SAB - which last month revealed an approach by rival Anheuser-Busch InBev - revealed that the strong US dollar took its toll on reported results, with net revenues down by 9% in the second quarter and half-year as a whole.

AB InBev has just over a week to go to make a formal bid for SAB or walk away under UK takeover rules.

Elsewhere, bakery chain Greggs was surging higher after an update confirmed the recent success of its new menu additions, such as its Aberdeen Angus spicy meatball melt baguette and mildly spiced chicken curry soup.

It posted a better-than-expected 4.9% rise in like-for-like sales in the 13 weeks to October 3.

Greggs shares lifted 7% or 82p to 1158p.

The biggest risers on the FTSE 100 Index were Anglo American up 24.7p at 604.2p, Royal Dutch Shell up 60.5p at 1766.5p, Morrisons up 5.4p at 173.6p and Fresnillo up 20p at 672.5p.

The biggest fallers on the FTSE 100 Index were Hikma Pharmaceuticals down 105p at 2260p, SABMiller down 142p at 3622p, easyJet down 48p at 1760p and Shire down 119p at 4485p.

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