British Energy Discusses Merger

123jump.com Staff
16 May, 2008
New York City

British Energy surged 5% after it reported that it exploring merger possibilities with several bidders. British Energy news lifted FTSE 100 index 0.8% to 6,304. British Air reported 45% rise in profit on 3% rise in revenue. Despite the higher fuel costs the operating costs were lower. The airline maintained its estimate of 4% rise in revenue in the current year. London financial service sector hiring was up 10% in April according to a private estimate but the number of applicants increased 20%.

[R]1:00AM New York, 5:00PM London – British Energy receives a number of bids at a higher price. British Air delivers a profit despite a surge in fuel costs.[/R]

Market sentiment

In London trading FTSE 100 rose 0.84% or 52.5 at 6,304.30.

Of the 102 FTSE 100 stocks 80 gained and 22 declined. British Energy led advancers in the index shares with a rise of 5.22% after the company reported that it has received bids from several parties that value the company higher than the current prices.

Investors show increased interest for British Energy

British Energy reported on its Web site today that the company is in discussions with a number of companies.

The company added that it has received a range of proposals from “several parties” wishing to make a full offer for the company including the Nuclear Liabilities Fund’s convertible cash sweep interest, and some of these include proposals priced higher than the company’s closing share price on 15 May 2008.

British Airways profits rise 45%

British Airways reported today that profit for the full year ended March 31 rose 45% while operating costs were down 0.7%. Revenues also increased 3.1% to £8.7 billion. Fuel costs for the airline were £2 billion in the quarter.

The airliner forecasts that revenue for the full year is expected to increase 4% which is near the lower end of the guidance given to the analysts. Non-fuel costs are expected to rise between 3% and 3.5% or around £200 million from the previous year.

New job vacancies in financial services sector rise 10% in April

Morgan McKinley reported today that hiring in the financial service sector in London rose 10% in April. Job vacancies in the month declined 5% from a year ago on the robust demand in the industry.

However, there was a 20% rise in applicant compared with the previous month and an increase of 35% from the number of applicants a year ago. The average salary in the financial service sector was £48,807, down 2% from the salary in March and 5% from a year ago.

Gainers & Losers

British Energy led advancers in the FTSE 100 index shares with a rise of 5.22% followed by rises in London Stock Exchange of 5.06%, in British Airways of 4.02%, in ICAP Plc of 3.78%, and Next Plc of 3.71%.

Royal Bank of Scotland led decliners in the FTSE 100 index shares with a drop of 3.44% followed by losses in Rolls Royce of 2.39%, in Barclays Plc of 2.03%, in Tate & Lyle of 1.38%, and First Group Plc of 1.35%.

Other commodity stocks fell as well. Rio Tinto fell 0.77%, BHP Billiton declined 0.74% and Antofagasta plunged 1.01%.

World markets

In London FTSE 100 Index closed higher 35.80 or 0.58% to 6,251.80, in Paris CAC 40 Index increased 2.27 or 0.04% to close at 5,057.51 and in Frankfurt DAX index lower 2.19 or 0.03% to close at 7,081.05. In Zurich trading SMI increased 88.82 or 1.17% to close at 7,683.43.

In Tokyo Nikkei 225 Index closed lower 32.26 or 0.23% to 14,219.48, in Hong Kong Hang Seng index increased 105.15 or 0.41% closed to 25,618.86. In Australia ASX 200 index higher 40.30 or 0.68% to close 5,931.00. In Malaysia KL Composite index increased 6.52 or 0.50% closed to 1,300.67.

In South Korea Kospi Index increased 3.17 or 0.17% to close at 1,888.88, in Thailand SET index closed higher 14.72 or 1.72% to 870.33 and Indonesia JSE Index edged increased 19.03 or 0.78% to 2,468.84. Sensex index in India increased 81.40 or 0.47% to 17,434.94.