British PM, Conservative leader try to woo third party

LONDON - Prime Minister Gordon Brown and his Conservative challenger David Cameron each made their case Friday for a coalition with the party that finished third in Britain's elections, hoping to secure the balance of power following an inconclusive vote.

The Conservatives, who won the largest number of seats in Thursday's contest, suggested that lawmakers from the third-place Liberal Democrats could serve as ministers in a future Tory government. But they held back from promising the far-reaching electoral reform the Liberal Democrats have demanded.

Brown, whose left-leaning Labour Party lost more than 90 seats, is fighting to cling to power, promising to back the Liberal Democrats on reform and opening negotiations with Britain's smaller, Scottish and Welsh nationalist parties.

The jockeying - which could stretch on for days or even weeks - was taking its toll on markets. The FTSE-100 fell more than 87 points amid the continuing uncertainty over who will take charge of Britain's ballooning deficit.

Cameron said a stable government was needed quickly to calm markets and that the Tories would promise to implement parts of Liberal Democratic election manifesto - but only offered the party, and leader Nick Clegg, an inquiry to examine the issue of electoral reform. "I want to make a big, open and comprehensive offer to the Liberal Democrats," Cameron said.

Brown went further in a similar approach to the Liberal Democrats, saying he agreed with their demands. "My view is clear - there needs to be immediate legislation on this to begin to restore the public trust in politics and to improve Parliament's standing and reputation, a fairer voting system is central," Brown said.

Clegg did not immediately respond in public but said earlier that the party that had gained the most seats and the most votes - the Conservatives - should have "the first right to seek to govern."

Labour came second in Thursday's vote. The Conservatives gained the largest number of seats but fell short of the parliamentary majority.

As sitting prime minister, Brown would be given the first chance to put together a government. His left-of-center Labour Party is seen as a better coalition fit with the Liberal Democrats.