UK Indexes, Pound Rise; KNOC Inches Closer to Acquire Dana

Arthi Gupta
11 Oct, 2010
New York City

The UK indexes and the pound gained after the world leaders meeting failed to settle the rising tensions in the currency markets. Irish manufacturing output declined in August. KNOC received acceptances of 89% Dana Petroleum shares. Weir Group confirmed completion of BDK acquisition.

[R]4:00 PM London – The UK indexes and the pound gained after the world leaders meeting failed to settle the rising tensions in the currency markets. Irish manufacturing output declined in August. KNOC received acceptances of 89% Dana Petroleum shares. Weir Group confirmed completion of BDK acquisition.[/R]

In London, FTSE 100 Index traded higher 23.20 or 0.41% to 5,681.35 and the pound edged lower to close at $1.5936.

Ireland''s manufacturing production in August fell for the first time in four months, the Central Statistics Office said today.

On a monthly basis, the seasonally adjusted manufacturing production index declined 16.4% in August following a 4.3% rise in July. On an annual basis, output rose at a slower pace of 10.4% in August compared to July growth of 13.4%.

Manufacturing turnover growth accelerated to 17.9% annually in August from 14.5% in July. On a monthly basis, turnover fell 4.7% in August following a 3.5% rise in July.

Korea National Oil Corp said today that as of October 8, it had owned or received valid acceptances of 84.03 million or about 89.17% of shares of Scotland-based Dana Petroleum plc.

Rok Plc won a framework contract for Highlands and Islands Enterprise, the Scottish Government''s economic and community development agency.

The framework, for which Rok is the sole contractor, would be worth up to £32 million over 4 years. The company won the contract following a five-way tender to renew the deal.

Rok said it would undertake every stage of most of HIE''s building projects across the entire Highlands and Islands region, from design right through to construction and completion, in conjunction with supply chain members.

Weir Group PLC confirmed that the acquisition of BDK Engineering Industries Ltd is completed. Earlier on September 2 Weir Group proposed acquisition of the valves business of BDK.

Petrofac Ltd., the oil and gas facilities service provider said it won a five-year contract by the Government of Sharjah, to take over operational responsibility and facilities management of the Sajaa Gas Plant and related assets, located approximately 30 km from the commercial centre of Sharjah, UAE. The contract is worth in excess of $250 million.

Gainers & Losers

Cobham Plc gained 0.97% to 230.10 pence after the aerospace and defense systems maker stated that its strategic business unit Cobham Analytic Solutions secured a prime contract to compete for Missile Defense Agency task orders of $1.6 billion or about £1 billion. The orders are expected to start before the end of this year.

easyJet plc fell 0.55% to 449.10 pence after the low-cost airline said it has reached an agreement to resolve its ongoing dispute and litigation with its founder Stelios Haji-Ioannou and easyGroup IP Licensing Ltd. over the terms and operation of the ''easyJet'' brand license.

As part of the settlement, the company amended its license agreement to pay an annual royalty of 0.25% of its revenue.

John Wood Group Plc soared 4.08% to 446.90 pence after the British energy services firm in its interim management statement said it continues to believe that overall performance for fiscal 2010 will be in line with its expectations. The company also said Wood Group GTS received an engineering, procurement and construction contract from GWF Energy LLC, valued at around $152 million.

Ladbrokes plc surged 3.12% to 142.30 pence after the betting and gaming company said in its interim management statement that operating profit for the third quarter ended September 30 surged 128%, reflecting 12% growth in revenues and lower operating costs. The firm revealed that operating profit jumped to £51.1 million from £22.4 million last year, helped by improved margins.

Ladbrokes noted that the 12% increase in group net revenue reflected an exceptional recovery in football margin, £8.3 million of gross win from the World Cup and a stronger machine performance.

Travis Perkins Plc declined 1.56% to 850.50 pence after the building materials supplier said its turnover for the nine months to the end of September improved 6% from last year and both its merchant and retail divisions improved their same store sales market share.