Takeover talk surrounding Imperial Tobacco (LON:IMT) buoyed the London market in an otherwise lacklustre Friday session.
The cigarette maker's shares wafted 67p, or 1.9%, to 3559p on renewed speculation that rival British American Tobacco (LON:BATS) has been courting bankers about financing for a full takeover of the Lambert & Butler and JPS maker.
The talk in the City on Friday was that BAT has taken on Barclays as its adviser for a bid that could be announced as soon as next week.
There was speculation last month that BAT might break up its rival and hive off parts of it to others such as Japan Tobacco.
On November 3, Imperial reported a good performance from key brands but said problems in Iraq and Syria took their toll.
Imperial's brands include Davidoff, Gauloises Blondes, JPS, West, Fine, News, USA Gold, Bastos, Lambert & Butler and Parker & Simpson. BAT shares fell 1.5p to 3859p.
A spokeswoman for BAT, whose brands include Pall Mall, Kent, Rothmans, Dunhill and Lucky Strike, declined to comment. Imperial could not be contacted at time of going to press.
Elsewhere, the FTSE 100 Index pared losses to stand 16 points ahead at 6346. The CAC-40 in Paris advanced five points and Germany's DAX rose 55 points.
Traders failed to react significantly to comments by European Central Bank President Mario Draghi that the ECB would "do what it must" to raise eurozone inflation.
In the UK, October’s UK public finance figures showed borrowing had not fallen as quickly as expected, leaving Chancellor George Osborne with less room for manoeuvre in his Autumn Statement next Wednesday.
Public sector net borrowing excluding banks in October was £8.2bn, higher than market forecasts of £6bn and last October’s total of £7.1bn - the largest October deficit since 2009.
The biggest faller overall was beleaguered South African platinum miner Lonmin (LON:LMI) after Lonmin’s shares tumbled after shareholders approved a deeply discounted rights issue to keep the company afloat. The stock reversed 8.47p, or 86%, to 1.38p.
Russ Mould at AJ Bell said: "Lonmin has been hit by plunging platinum prices, but there are fears a further cash injection will be needed unless prices improve.”
Halosource (LON:HAL) backtracked 5.5p to 19.5p as the the global clean water technology group said order delays and operational problems in China would hit second half drinking water revenue.
Oil and gas investor Parkmead (LON:PMG) leaked 2.75p to 68.5p despite telling investors that the Diever West gas field in the Netherlands has achieved first gas.
Aqua Bounty Technologies (ABTU) soared 13.5p, or 93%, to 28p on news that the US Food & Drug Administration had approved its genetically enhanced salmon for production and sales.
Sweden iron ore explorer Beowulf Mining (LON:BEM) confessed it was at a loss to know why the market was getting so excited about its shares, which rose 0.9p or 21% to 5.25p, although it did note that its third quarter interim statement was due in 10 days.
*Remember, Proactive is reporting the hot market topics being discussed by traders and bankers - it is not market fact. Neither is it an invitation to trade on the information.
LONDON OPEN
London shares were on the slide on Friday amid a lack of corporate news, but Imperal Tobacco was higher on takeover talk.
The FTSE 100 Index fell four points to 6325 while the CAC-40 in Paris dropped 23 points and Germany's DAX dipped 16.75 points.
Markets were treading water following slight falls in the main US indices on Thursday. Japan's Nikkei rose 20 points and the Shanghai Composite closed 13 points up.
Traders failed to react significantly to comments by European Central Bank President Mario Draghi that the ECB would "do what it must" to raise eurozone inflation.
In the UK, October’s UK public finance figures showed borrowing had not fallen as quickly as expected, leaving Chancellor George Osborne with less room for manoeuvre in his Autumn Statement next Wednesday.
Public sector net borrowing excluding banks in October was £8.2bn, higher than market forecasts of £6bn and last October’s total of £7.1bn - the largest October deficit since 2009.
On the markets, Imperial Tobacco (LON:IMT) wafted 76p higher to 3568p on renewed speculation that rival British American Tobacco (LON:BATS) has been courting bankers about financing for a full takeover of the Lambert & Butler and JPS maker.
The biggest faller overall was beleaguered South African platinum miner Lonmin (LON:LMI) after Lonmin’s shares tumbled after shareholders approved a deeply discounted rights issue to keep the company afloat. The stock reversed 8.32p, or 84.5%, to 1.53p.
Russ Mould at AJ Bell said: "Lonmin has been hit by plunging platinum prices, but there are fears a further cash injection will be needed unless prices improve.”
Halosource (LON:HAL) backtracked 5.5p to 19.5p as the the global clean water technology group said order delays and operational problems in China would hit second half drinking water revenue.
Oil and gas investor Parkmead (LON:PMG) leaked 1.25p to 70p despite telling investors that the Diever West gas field in the Netherlands has achieved first gas.
MARKET PREVIEW
London's premier share index is tipped to open flat after yesterday's gains as central banks and their plans remain the focus.
The FTSE 100 Index closed 52 points higher at 6,330 but today is called to start just 0.5 higher.
On Thursday, the European Central Bank’s Peter Praet hinted that another quantitative easing injection could be on its way, suggesting further loosening of policy, while in the US the prospect of a December rise initially was pushed aside but then appeared to prompt trader jitters.
The benchmark Dow, S&P500 and Nasdaq all closed a shade down.
Angus Nicholson, an analyst at spread-better IG, noted: "The pullback seen in the US dollar in the wake of the Fed minutes does seem to reflect a lot of uncertainty around the pace of rate hikes by the Fed.
“It is this US-dollar weakness and ongoing swoon in commodity prices that provides a jarring counterpoint to the gains seen in Asian equities of late."
Speaking of Asia, gains appeared to be consolidated. The Nikkei 225 in Japan added 20 overnight and China's Shanghai Composite index was up 13.
Meanwhile, commodity prices are under pressure, with copper reaching new six-year lows heightening worries over global demand. Oil is at around the US$40 a barrel mark.