Strategy concerns send TalkTalk lower Strategy concerns meant TalkTalk missed out on a London market rebound on Friday. Berenberg gave TalkTalk a "sell" rating, sending the stock 3.7 per cent lower to 282.5p. Rising subscriber acquisition costs and slower TV growth, as seen in the internet provider's second-quarter numbers this month, show its strategy to add value is failing, the broker argued. Berenberg reckoned many of the first wave of subscribers to TalkTalk's YouView TV platform have kept the set-top box but downgraded to a broadband-only package as soon as their contracts expire. "TV is the cornerstone of company strategy, leading to lower churn and better average revenue per user," said Berenberg. Early evidence of TV churn is worrying. Bid speculation has been a regular support for TalkTalk, with Vodafone long seen as the most likely bidder. TalkTalk chief executive Dido Harding, speaking at a conference on Friday, said the company would like to lease out its lines to fill in network gaps for a wireless peer such as Vodafone. "The strategic value in buying TalkTalk is buying a seat at the convergence table," said Berenberg. Based on TalkTalk achieving one-quarter of its base on low-end Sim cards, we believe the strategic value could be £400m to a mobile network. Based on our 233p valuation, it suggests that value is already more than fully priced in. Miners and oil companies led the wider market higher after China cut interest rates. The FTSE 100 rose 1.1 per cent, up 71.86 points to 6,750.76 as Anglo American jumped 6.7 per cent to £13.80 and Tullow Oil added 5.8 per cent to 505p. Smith & Nephew edged 0.3 per cent higher to £10.90 on a retread of talk that bankers have been trying to cajole Stryker into reviving its possible bid. Under Takeover Panel rules Stryker cannot make an unsolicited approach to Smith & Nephew until December, having admitted in May that it had been working on a deal. Ophir Energy lost 5.6 per cent to a three-year low of 170p after making an all-share bid for Salamander Energy, which rose 0.6 per cent to 91.3p. Oriel said paying fair value for a company using your own undervalued stock makes little sense. Nevertheless, "we get the feeling that the deal is all but set to go," added the broker. Although existing shareholders on both sides have the right to be unhappy, Ophir's management sounds confident that it has won enough support. Services group Serco bounced off a session low of 159.7p to close at 170p, down 5 per cent, after the wife of new finance director Angus Cockburn spent £147,000 to take a maiden stake. Serco has hit an 11-year low this week on uncertainty about the level of shareholder dilution to expect from its rights issue planned for March. Tullett Prebon lost 5.4 per cent to 253.5p after the interdealer broker sold nearly 13m shares at 248p apiece to fund its acquisition of PVM Oil Associates.