Britain's opposition Conservatives offered to work with their smaller Liberal Democrats rivals in government on Friday after a dramatic parliamentary election that produced no outright winner for the first time since 1974, Reuters reported.
The result unnerved investors worried that a weak government and protracted negotiations over who should lead the country would hamper efforts to cut the country's massive debts.
The center-right Conservatives won the most seats in the 650-seat House of Commons, comfortably ahead of the ruling center-left Labour Party but not in overall control. The centrist Liberal Democrats came a distant third.
Prime Minister Gordon Brown remained in office in a caretaker role pending the emergence of a new government, in accordance with British constitutional convention.
He said the Conservatives and Liberal Democrats had every right to try to do a deal first but was ready to talk to the Lib Dems about an agreement if discussions failed. A Lib Dem/ Conservative deal would almost certainly end his tenure as party leader.
Thursday's poll, marred by scenes of anger as hundreds of voters were unable to cast their ballots due to administrative problems, left none of the three big parties satisfied.
The Conservatives came tantalizingly close to an outright win but were left at the mercy of smaller parties. Ahead in the polls by double digits for most of last year, they saw their lead shrink in recent months despite voter fatigue with Labour.
For Labour, hopes of extending their 13 years in office looked tenuous, while a predicted Lib Dem surge did not happen.
With results in 649 out of the 650 parliamentary constituencies declared, the Conservatives had won 306 seats, followed by Labour on 258 and the Lib Dems on 57.