UK Indexes Decline; HSBC Terminated Nedbank Offer

Arthi Gupta
15 Oct, 2010
New York City

The UK indexes fell after weaker-than-expected U.S. economic data. Old Mutual said HSBC terminated offer talks for Nedbank. Metro Baltic Horizons agreed to sell 30.7% interest in Metro Plaza.

[R]5:30 PM London – The UK indexes fell after weaker-than-expected U.S. economic data. Old Mutual said HSBC terminated offer talks for Nedbank. Metro Baltic Horizons agreed to sell 30.7% interest in Metro Plaza.[/R]

In London, FTSE 100 Index traded lower 23.84 or 0.42% to 5,703.37 and the pound edged higher to close at $1.6025.

Old Mutual plc, the Anglo-South African insurer announced that HSBC Holdings plc will not proceed with a partial offer for Nedbank following the expiry of the agreed exclusivity period. Old Mutual added that it is no longer in discussions with HSBC concerning its shareholding in Nedbank.

Old Mutual noted that the reasons for HSBC''s withdrawal were not disclosed to the company.

In another report, HSBC Holdings plc said Société Immobilière Malesherbes Anjou, an indirect wholly owned subsidiary sold its building at 85-93 rue des Trois Fontanot in Nanterre, for €33.5 million in cash, to STAM Europe.

Serviced Office Group, the flexible office space provider conditionally raised approximately £1 million, before expenses, through a placing of 33,333,333 new ordinary shares of 1 pence each at a price of 3 pence per ordinary share. The company will use the proceeds to build and develop its portfolio of service offices.

Metro Baltic Horizons Plc concluded an agreement for the sale to Lords LB Baltic Fund 1 of a 30.7% shareholding in Focus Kinnisvara OU, the company''s 80.7% owned subsidiary, whose principal and only property asset is Metro Plaza, a recently developed office building prominently located in Tallinn.

As per the terms of the agreement, the total consideration, payable in cash, to the company will be about €2.1 million which implies a value for Metro Plaza about 7% above the latest independent valuation of Metro Plaza as at June 30. The company said that it would use the proceeds of the disposal to pay its debt and for working capital purposes.

Gainers & Losers

Eaga plc slumped 4.40%to 103.25 pence after the supplier of heating and renewable energy solutions issued an interim management statement for the period between June 1 and October 14, stating that the group''s overall performance has been in line with the guidance provided in September.

ICAP plc fell 0.27% to 476.60 pence after the inter-dealer money broker said its board proposes to appoint Iain Torrens to the position of Group Finance Director, subject to FSA approval. Iain has been Group Financial Controller at ICAP plc, since July 2008.

LiDCO Group plc surged 5.71% to 18.50 pence after the hemodynamic monitoring company said GE Healthcare, a unit of General Electric Co. successfully completed development of a proprietary communications link between LiDCO monitors and GE''s Centricity Clinical Information Systems available in Europe, the Middle East and Africa.

Strategic Thought Group Plc gained 2.74% to 37.50 pence after the software and services company said trading results for the six months to September 30, 2010 are expected to show sales of approximately £3.0 million and an operating loss before share-based payment charges, interest and tax of approximately £0.8 million.