Sector-mate Xstrata rose 2.4 percent. "We're seeing the fruit of commodity prices being as high as they are and the capital expenditure they're putting in, thus you've seen BHP stock rise from 580p in January to over 700p today," said, Martin Dobson, Broking Manager at brokers Hoodless Brennan.
Asian-focused bank Standard Chartered, often the subject of take-over talk fell 1.1 percent, with investors looking past an as-expected rise in 2004 profits and concentrating on its statement that it wanted to stay independent.
Other banks also slid, with Barclays, itself no stranger to the bid rumour mill, and HBOS HBOS both down 0.7 percent.
The FTSE 100 index closed down 5.7 points at 5,053.2, and would have closed up slightly but for 8 points of downside coming from ex-dividend quotations. Shares trading without the right to the latest dividend payment included catering company Compass off 3.3 percent and drugs giant GlaxoSmithKline down 1.9 percent.
Traders said investors took in their stride comments from Federal Reserve chief Alan Greenspan that the real benchmark Fed funds rate remained "fairly low" despite 6 rate increases since June, and traders said the market was also due a pullback after hitting a 2-1/2 year intraday high on each of the past 12 sessions.
"We've finally run into a little consolidation but it's hardly a major collapse is it? The rumour mill seems to have slowed down a bit, along with dealing volumes," said Hilary Cook, Director of Investment Strategy at Barclays Private Clients.
AstraZeneca moved against the tide, adding 1.2 percent, as dealers said talk returned that it could be a take-over target for rival GlaxoSmithKline or a US drug giant as strong cashflow but slowing growth could force some of the industry's big names to look to consolidate.
Cairn Energy was a major blue chip failure, down 2.7 percent to extend its fall this week to over 6 percent as jitters mount ahead of the oil explorer's trading update on Thursday. The shine was taken off Cairn's spectacular share price performance in 2004 when the company announced a setback to its Indian drilling programme in December, which knocked a quarter off its share price rally.
Oil major BP, which also traded ex-dividend, closed 0.7 percent higher as oil prices held steady after the US government reported a rise in crude and gasoline stocks.
Shares in news and information provider Reuters Group recovered from an early dip and closed up 3 percent after the company posted better than expected full-year profits thanks to disposals, cost cutting, improving sales and a return to profit at electronic trading unit Instinet.
Mid-cap technology firm CSR dropped 14.6 percent after forecasting revenue in the current quarter would fall below the level in the previous quarter due to inventory held by manufacturers and a seasonal slowdown.
Moving the other way motoring services group RAC closed 6.5 percent higher after it announced a renewed push into the car insurance market and reported a 2 percent rise in annual profits.
Mid-cap industrial services firm Brambles rose 3.9 percent after investment bank Morgan Stanley raised its target on the company's shares to 325p from 260p, citing the performance of its core pallet division CHEP.