logo-loader

FTSE ends flat despite takeover rumours

Published: 16:54 04 Aug 2015 BST

london_skyline_new

London’s blue-chip stocks ended the day slightly lower as the summer lull hung over European markets.

In Germany, the Dax managed a 6 points gain to 11,450 while the Paris-based Cac40 in France lost 16 points to 5,104.

“It was a sleepy summertime afternoon this Tuesday, with the indices all failing to spark into life despite improvements in the commodity sector” Connor Campbell at Spreadex said.

A barrel of US light crude rose back towards US$46, while even gold and silver managed 0.5% gains to US$1,091 and US$14.59 respectively.

Unsurprisingly, miners performed well with Randgold Resources (LON:RRS) eliminated earlier losses with a 20p increase to 3826p.

Mexican silver miner Fresnillo (LON:FRES), which had half-year results out on Tuesday, rebounded 12p to 645p.

It wasn’t enough for the FTSE 100 which closed 2 points down to 6,686.

Shire (LON:SHP) dragged the index lower after the pharma group urged US peer Baxalta to reconsider after its board refused to enter talks over a US$30bn merger.

It was to be an all-share deal valuing Baxalta’s shares at US$45.23, a 36% premium to last night’s close. Shire’s shares dropped 5.8% to 5,395p.

In other M&A news, shares in Quintain Estates & Development (LON:QED) rose as some suggest it could be the subject of a bidding war.

Rumours in the city are that, despite the company reaching a 131p per share agreement with US-based Lone Star Real Estate fund last month,  a new bid could be on the cards for the Wembley Arena owner. Shares nudged 0.75p to 132.25p.

There were also murmurings about Smiths Group (LON:SMIN) today that an activist investor was muscling in.

US hedge fund ValueAct took a stake of up to 5% in the company and  is said to believe Smiths’ medical device business and John Crane seals division could be takeover targets. Shares rose 4.44% to 1,200p.

In the small cap space, African Potash (LON:AFPO) has signed a deal with Comesa, a free trade union of twenty African countries,  to provide 500,000 tonnes of fertiliser over three years.

The deal could be worth as much as US$1-3mln worth of revenue from the firm’s initial fertiliser trade deal with Comesa could come through in the next couple of months. Shares climbed 32.3% to 0.4p.

Meanwhile, Arria NLG (LON:NLG) secured a grant for its configurable Microplanner technology, an important part of its software which takes data and uses it to automatically write reports. Shares rose 23.8% to 44.5p.

Conversely, Armour Group (LON:AMR) said its shares will be suspended as from tomorrow, as per AIM’s listing rules, because it has not been able to make the transformation yet to an investment company. Shares in the cash shell fell 42.1% to 2.75p.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

2 hours, 1 minute ago