UK Indexes Rise; Horizon Buys APR Energy for $855 Million

Arthi Gupta
13 Jun, 2011
New York City

The UK indexes edged higher. Horizon agreed to acquire Florida-based APR Energy for $855 million. The Bank of England Chief Economist Spencer Dale noted short and medium-term inflation expectations are more mixed than significantly de-anchored.

[R]3:30 PM London – The UK indexes edged higher. Horizon agreed to acquire Florida-based APR Energy for $855 million. The Bank of England Chief Economist Spencer Dale noted short and medium-term inflation expectations are more mixed than significantly de-anchored.[/R]

The Bank of England Chief Economist Spencer Dale wrote in the foreword to the bank''s latest Quarterly Bulletin that the signals regarding short and medium-term inflation expectations are more mixed, but there are few signs that they have become significantly de-anchored.

The Confederation of British Industry said today that economic recovery alone will not solve the deep-seated structural problems in the UK labor market. The business lobby said it expects unemployment, which is currently at 2.46 million, to continue to rise through this year, peaking around 2.6 million, before edging lower next year.

In London, FTSE 100 Index gained 19.96 or 0.35% to 5,785.20 and the pound edged higher to $1.6321.

Horizon Acquires APR Energy

Horizon Acquisition Co. Plc acquired Jacksonville, Florida-based APR Energy, along with its service company Falconbridge Services LLC, for $855 million in a cash and stock deal. The company paid $359 million in cash and $495 million in its shares.

Spotify Inks Deal with Universal Music

Spotify AB, the UK-based online music company is said to have signed a U.S. distribution deal with Vivendi SA''s Universal Music Group, the world''s largest music label, according to reports on Sunday. Terms of the deal were not disclosed.

Gainers & Losers

AssetCo Plc surged 29.1% to 4.70 pence after the fire and rescue services business confirmed speculations that it is in advanced takeover discussions with a number of parties, which ''may or may not lead to an offer being made for the business''.

Imperial Tobacco Group Plc fell 0.82% to 2,068.00 pence after the international tobacco company issued an update on Spanish tobacco pricing.

The company stated that based on retail prices as at June 10, it currently estimates that for the financial year to September 30, adjusted operating profits derived from Spain could reduce by up to £110 million against the company''s previous expectations. Of this, up to £40 million represents a one-off non-recurring impact on Imperial Tobacco''s logistics business.

Kazakhmys Plc surged 3.56% to 1,252.00 pence after the copper miner with main assets in Kazakhstan signed a memorandum of understanding with the China Development Bank Corp. to secure a $1.5 billion loan facility, in addition to the existing facility of $2.7 billion.

Unilever Plc dipped 0.05% to 1,936.00 pence after the supplier of consumer goods’ chief executive officer Paul Polman aims to double the company''s revenue that has been around $40 billion to $45 billion in the past decade without acquisitions, the Financial Times reported.

WPP Plc rose 1.44% to 738.00 pence after the provider of media communications services, plans to allocate £200 million in 2011 for acquisitions, the Bloomberg reported, citing Chief Executive Officer Martin Sorrell.