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* FTSE 100 down 0.3%, FTSE 250 down 0.5%
* BAT, Imperial Brands dip on Philip Morris-Altria mergertalks
* BP gains after divestment plans
Aug 28 (Reuters) - London's main index dipped on Wednesdayas tobacco giants fell after American rivals Philip Morris andAltria confirmed merger talks, while a deeper inversion of theU.S. treasury yield rekindled fears of a global recession.
The FTSE 100 slipped 0.3%, down for the fourthstraight session, while the midcap index inched 0.5%lower by 0710 GMT, after getting a boost in the previous sessionfrom the opposition parties pledge to avert a no-deal Brexit.
British American Tobacco and Imperial Brandswere lower by 1% and 2%, respectively, after newsovernight that Philip Morris and Altria were intalks to reunite.
Losses were limited by a 1.1% rise in BP after theBritish oil major announced a deal to sell all its Alaskanproperties for $5.6 billion to privately held Hilcorp Energy.
Small-cap tour operator Thomas Cook tumbled 15%after a substantial agreement on terms of a rescue package,which Jefferies analysts said could lead to the company's sharesbeing de-listed.(Reporting by Muvija M and Shashwat Awasthi in Bengaluru;Editing by Sriraj Kalluvila)