UK Indexes Rise; Rolls-Royce Won $110 Million Orders

Arthi Gupta
06 Dec, 2010
New York City

The UK indexes gained after manufacturing sector forecasted to grow in 2011. Rio Tinto confirmed plans to buy Riversdale for A$15 per share. Rolls-Royce won $110 million in new contracts for energy projects. De La Rue confirmed the receipt of a preliminary bid.

[R]4:00 PM London – The UK indexes gained after manufacturing sector forecasted to grow in 2011. Rio Tinto confirmed plans to buy Riversdale for A$15 per share. Rolls-Royce won $110 million in new contracts for energy projects. De La Rue confirmed the receipt of a preliminary bid.[/R]

In London, FTSE 100 Index gained 38.30 or 0.67% to 5,783.62 and the pound edged lower to close at $1.5675.

Manufacturing Sector Forecast to Improve

The UK manufacturing sector is powering ahead into the end of the year, led by strong overseas demand, and is all set to outperform the rest of the economy in 2011, a fresh survey suggested.

The Engineering Employers Federation-BDO LLP Manufacturing Outlook survey, covering more than 500 firms indicated output remaining at record levels for the third quarter running.

The EEF’s latest forecasts for the UK economy estimated the growth at 1.8% and 2.1% in 2010 and 2011 respectively and manufacturing to expand at 3.8% in 2010 and 3.2% in 2011.

New Car Registrations Decline

New car registrations in the United Kingdom dropped 11.5% annually to 139,875 units in November, the Society of Motor Manufacturers and Traders said.

Riversdale Confirms Takeover Bid

Riversdale Mining Ltd., the Australian coking coal miner confirmed that it is in talks with Rio Tinto and may entertain a possible bid. The company said it had received an A$3.5 billion approach from Rio or about A$15 per share.

Rolls-Royce Wins Contracts

Rolls-Royce Group plc, the defense and aerospace company said it won new contracts valued at over $110 million for energy projects in Europe, Africa, India and the Middle East.

As part of these contracts, Rolls-Royce will deliver both power generation and pipeline transmission products and services.

De La Rue Confirms Takeover Bid

De La Rue Plc, the bank notes printer and papermaker confirmed that it received a highly preliminary and opportunistic takeover approach.

Reports had suggested earlier that the company received a £750 million bid from Oberthur Technologies, a France-based privately-owned printer. The reports also said that the bid was rejected by De La Rue and the French company was mulling a fresh offer.

De La Rue is involved in the production of over 150 national currencies and a range of security documents, such as passports, authentication labels and fiscal stamps.

Gainers & Losers

AstraZeneca plc fell 0.28% to 3,038.00 pence after the biopharmaceutical company announced that the European Commission granted marketing authorization to BRILIQUE for the prevention of atherothrombotic events in adult patients with Acute Coronary Syndromes.

British Airways Plc gained 0.41% to 272.70 pence after the airline reported its total traffic for the month of November grew 3.5% on a 5.1% increase in capacity from a year ago, reflecting strength in the Asia-Pacific region.

Looking ahead, the company said its December traffic will be affected by the current adverse weather in the UK and other parts of Europe.

easyJet plc rose 1.29% to 433.10 pence after the low-cost airline reported a 10.2% rise in number of passengers and a 90 basis point increase in load factor for the month of November.

Elan Corporation, plc increased 2.41% to €3.99 after the neuroscience-based biotechnology company appointed Robert Ingram, a former GlaxoSmithKline executive, as its Chairman, effective January 26. He replaces non-executive chairman Kyran McLaughlin, who announced his intention to step down in April. Ingram has been inducted to the Board effective immediately.

HSBC Holdings plc edged higher 0.14% to 666.70 pence after the financial services giant was sued for $9 billion by the court-appointed trustee overseeing the liquidation of Bernard Madoff''s estate, alleging financial fraud and misconduct by the bank that enabled Madoff''s fraud.

Ryanair Holdings PLC declined 0.73% to €3.83 after the low-cost airline reported November passengers of 5.06 million, 2% higher than 4.96 million in the prior year.