UK Manufacturing at 10-Month High; GSK Raises Stake in Theravance

Arthi Gupta
02 Apr, 2012
New York City

The UK indexes soared after manufacturing activity and business sentiment rose in March and housing equity injections remained unchanged in the fourth quarter. GlaxoSmithKline increased its stake in U.S.-based Theravance.

[R]5:30 PM London – The UK indexes soared after manufacturing activity and business sentiment rose in March and housing equity injections remained unchanged in the fourth quarter. GlaxoSmithKline increased its stake in U.S.-based Theravance.[/R]

The UK indexes soared on better-than-estimated economic data.

In London trading, the benchmark index FTSE 100 gained 106.44 or 1.9% to 5,874.89 and the pound edged higher to $1.6022.

UK Manufacturing Activity Climbs

Activity in the UK manufacturing sector increased in March, data from a survey by Markit Economics and the Chartered Institute of Purchasing and Supply showed today.

The seasonally adjusted purchasing managers' index for the manufacturing sector rose to 52.1 in March from 51.5 in February, revised up from 51.2.

UK Housing Equity Injections Flat

UK housing equity injections remained at £8.47 billion in the fourth quarter, the Bank of England said today.

UK Confidence Soars

The UK business sentiment soared in March, according to a survey by the Lloyds Banking Group PLC. The corresponding index jumped to 31 in March from 1 in February.

UK Home Prices Rise

The average asking price for a home in the United Kingdom rose 0.2% in March from a month ago followed a flat reading in February, property tracking Web site Hometrack said on Monday.

On a yearly basis, home prices fell 1% in March after declining 1.4% in February.

Avon Rebuffs Coty Offer

Coty, Inc., the privately held cosmetic maker proposed to acquire cosmetics maker Avon Products, Inc. for $23.25 a share in an all-cash deal valued at about $10 billion.

The offer price of $23.25 per share represents a 20% premium to Avon's closing price of $19.36 on Friday.

However, Avon immediately rejected the unsolicited bid, deeming the offer as ""opportunistic and not in the best interest of Avon's shareholders.""

Coty said its several approaches to Avon in the last two months were rebuffed by its long time chief executive Andrea Jung and the company board.

Coty, named after its founder Francois Coty was founded in 1906 in Paris, is controlled by John A. Benckiser and his company also controls a stake in Reckitt Benckiser.

Gainers & Losers

GlaxoSmithKline PLC rose 2.3% to 1429 pence after the global healthcare group increased its stake in Theravance, the U.S.-based biopharmaceutical company to 26.8% by investing about $212.89 million.

The Royal Bank of Scotland Group plc climbed 0.4% to 27.75 pence after the banking and insurance holding company agreed to sell certain businesses in Asia Pacific to CIMB Group Sdn Bhd.

Wolseley plc gained 2.2% to 2,436 pence after the building materials distributor said it completed the sale of Brossette, the French plumbing and heating business to Saint Gobain.