UK Indexes Rise; National Grid Sells Metering Services for

Arthi Gupta
24 Oct, 2011
New York City

The UK indexes traded higher after European leaders moved closer towards a resolution to the debt crisis. U.S.-based Kennedy Wilson agreed to acquire UK loan portfolio for $1.8 billion. National Grid agreed to sell Utility Metering Services to Macquarie Bank for

[R]4:00 PM London – The UK indexes traded higher after European leaders moved closer towards a resolution to the debt crisis. U.S.-based Kennedy Wilson agreed to acquire UK loan portfolio for $1.8 billion. National Grid agreed to sell Utility Metering Services to Macquarie Bank for £274.3 million.[/R]

The UK indexes edged higher after the European leaders sounded optimistic note on the bank recapitalization and struggled to convince banks to take higher losses on Greek bonds.

Italy also faced direct pressure from Germany and France to “leave within its means” and lower its spending and devise a plan to lower its debt.

The European Union finance ministers on Friday agreed to disburse the next tranche of financial aid to Greece worth €8 billion.

The German lower house of parliament Bundestag will discuss leveraging of the euro-zone bailout fund on Wednesday, before the EU summit, government spokesman Steffen Seibert told reporters in Berlin today.

In London, FTSE 100 Index gained 53.36 or 1% to 5,542.09 and the pound edged higher to $1.5932.

Bank of England''s Deputy Governor Paul Tucker on Monday said that the margin requirement for uncleared over the counter derivative contracts should remain flexible to account for changes in the economic climate.

Kennedy Wilson Acquires UK Loan Portfolio

Kennedy Wilson, the international real estate investment and services firm announced that the company and its institutional partners agreed to acquire a loan portfolio from Bank of Ireland for $1.8 billion. A majority of the loan portfolio assets are secured by high quality, London-based office, multifamily and retail properties.

National Grid to Sell Utility Metering Services

National Grid plc agreed the sale of Utility Metering Services, a non-regulated metering business in the UK, to Macquarie Bank Limited, for a total consideration of £274.3 million.

The cash proceeds from the sale would be used within National Grid to fund the continuing investment program.

Mattel Acquires HIT Entertainment

Mattel, Inc. agreed to buy U.K.-based media firm HIT Entertainment for $680 million in cash from a consortium led by Apax Partners funds. The deal is anticipated to be financed with a combination of cash and debt.

Gainers & Losers

Compass Group Plc rose 0.7% to 565.50 pence after the holding company said it acquired Integrated Cleaning Management Ltd. from Paul Rafferty and Coral Brodie.

Fuller, Smith & Turner Plc fell 0.7% to 680 pence after the brewer and inns owner said that it is to buy five new pubs, increasing its reach in Central London and adding 58 bedrooms to the business.

InterContinental Hotels Group Plc gained 1.1% to 1,127 pence after the international hotel business reported revenues per available room increased 8%, driven by occupancy growth of 3 percentage points and rate growth of 3.4%.

Mouchel Group Plc soared 5% to 15.75 pence after the consulting and business services company completed the sale of its pipeline design business to Mott MacDonald, a privately held management, engineering and development consultancy, for an initial cash consideration of around £2.55 million.

Rio Tinto plc surged 6.6% to 3,359 pence after the miner said its long term demand outlook is unchanged. The company added that it has recorded exceptional operational and financial performance.