UK Indexes Rally on HSBC Bid for Nedbank

Arthi Gupta
23 Aug, 2010
New York City

The UK indexes rose after HSBC agreed to buy a majority stake in Nedbank Group. BP announced open water fishing operations. Verizon Wireless completed the acquisition of Centennial Communications assets.

[R]4:30 PM London – The UK indexes rose after HSBC agreed to buy a majority stake in Nedbank Group. BP announced open water fishing operations. Verizon Wireless completed the acquisition of Centennial Communications assets.[/R]

The Australian Parliament is facing the prospect of a hung Parliament for the first time in seventy years. The proposed mining profits tax may be scrapped if the opposition Liberal Party forms the new government in Australia.

In London, FTSE 100 Index traded higher 37.48 or 0.71% to 5,232.83 and the pound edged lower to close at $1.5507.

HSBC Holdings plc entered into exclusive discussions with Old Mutual plc about the possible acquisition of a 70% stake in Nedbank Group Ltd, including the entire 52% stake Old Mutual owns in Nedbank.

Old Mutual said the proposed transaction would represent a major step in delivering its strategy as set out in March as it divest non core operations and focus on long term investments.

Old Mutual said the proceeds would be used to partially reinvest in South Africa and partially in various emerging markets and reduce existing debt.

BP Plc announced the commencement of the Open Water Fishing Operations aimed at removing drill pipe within the MC252 Blow Out Preventer or BOP Operations.

Under the guidance and approval of the National Incident Commander and Unified Area Command, BP has been authorized to begin open water fishing operations from the MC252 Blow Out Preventer. The fishing operations will aim at removing drill pipe within the MC252 BOP. Operations commenced this morning.

Following successful fishing operations and authorization from the NIC, BP will proceed with replacement of the original BOP with the BOP from the Transocean Development Driller II. In anticipation of a successful operation, the DDII set a storm packer and has unlatched its BOP from the second relief well site.

In the case fishing operations are unsuccessful, BP and the federal science team are developing contingency procedures which would be carried out under the approval from the NIC.

Verizon Wireless, a joint venture of Verizon Communications and Vodafone announced that it has purchased from AT&T Inc. certain operating assets of Centennial Communications Corp. in Louisiana and Mississippi for $235 million. The purchase includes Centennial''s spectrum licenses, network assets and more than 117,000 current customers in six service areas: Lafayette, Beauregard, Iberville and West Feliciana, La., and Claiborne and Copiah, Miss.

Gainers & Losers

Amlin plc dropped 2.92% to 409.70 pence after the insurance and reinsurance underwriting group said first half net profit declined 49.4% to £84.5 million or 16.9 pence from £167 million or 34.8 pence a year ago. Net assets for the period rose 25.4% to £1.63 billion from last year''s £1.3 billion.

Future Plc soared 3.52% to 16.50 pence after the publisher of special-interest consumer magazines and Web sites announced the appointment of Mark Wood as Chief Executive of its UK business, with effect from August 31.

Kingspan Group plc surged 7.34% to €5.46 after the maker of insulated roof, architectural wall and façade systems said first half revenues grew 1.1% to €558.7 million from €552.5 million last year. Net profit for the six months increased 3.3% to €21.30 million or 12.2 cents per share from €20.61 million or 12.1 cents per share in the year-ago period. Pre-tax profit for the period rose 2.1% to €25.51 million from €24.99 million in the year-ago period.

Lombard Medical Technologies plc slumped 6.29% to 0.820 pence after the medical devices maker reported first half total revenues increased 16% to £1.44 million from £1.24 million a year ago. Net loss in the period narrowed 1.3% to £3.71 million or 0.19 pence per share, compared with a loss of £3.76 million or 0.56 pence per share last year.

Marks and Spencer Group plc gained 1.89% to 339.00 pence after the food and home products retailer appointed Robert Swannell to its board on October 4 as a non-executive director prior to taking up his position as Chairman on January 4, 2011.

Petrofac Limited advanced 3.52% to 1,410.00 pence after the oil and gas facilities service provider stated first half revenues surged 34% to $2.13 billion compared to the previous year''s $1.59 billion. Net profit in the period soared 130% to $334.8 million or 96.73 cents as against net income of $145.6 million or 42.70 cents in the prior-year period.

Toledo Mining Corporation plc grew 0.46% to 28.38 pence after company engaged in investment and exploration and development of mining projects reported fiscal year 2010 revenue slumped 69.7% to £0.36 million, compared to £1.19 million in last year. Pre-tax loss in the period was £1.98 million or 4.74 pence per share, compared to a profit of £1.91 million or 5.48 pence per share in the previous year.