Miners in UK Rebound; Cadbury Wants Formal Bid

123jump.com Staff
22 Sep, 2009
New York City

UK stocks edged higher as investors showed willingness to buy stocks ahead of earnings next month. Cadbury asked Takeover Panel to request a formal bid from Kraft Foods or drop the merger plans. Mining stocks rallied as commodities and oil gain.

[R]4:00PM London, 11:00 AM New York – UK stocks edged higher as investors showed willingness to buy stocks ahead of earnings next month. Cadbury asked Takeover Panel to request a formal bid from Kraft Foods or drop the merger plans. Mining stocks rallied as commodities and oil gain.[/R]

Cadbury Plc has approached the UK’s Takeover Panel and demanded a formal bid from Kraft Foods Inc. The Kraft bid values the company chocolate maker at $16.2 billion or 745 pence at the time of offer on Sept 7. The news was first reported by Financial Times in London.

In trading, stocks edged higher as mining and resource stocks led the recovery in a faltering rally that has stretched for six months. Crude oil and gold futures closed higher.

In London FTSE 100 Index closed higher 33.61 or 0.6% to 5,167.97 and the pound closed at $1.63 and unchanged at 1.10 euros.

Carnival Plc rises on earnings and Xstrata, Kazakhmys and Vedanta Resources gained as base metal prices edged higher.

Gainers & Losers

Atlantic Global Plc closed unchanged at 20.50 pence after the management software provider said a pre-tax loss in its half year results but said it expected to deliver an improved performance in the second half of the financial year. Revenue in the six months to June 30 was £647,000 down from £1.12 million in the same period the year before.

Aurelian Oil & Gas PLC plunged 31.4% to 17.15 pence said that the results from its Voitinel-1 well in Romania were disappointing.

Balfour Beatty plc fell 0.3% to 338.70 pence after the engineering and construction contractor said that the company and its operating businesses have co-operated fully with the U.K. office of fair trading in relation to the decision arising from its industry-wide investigation into tender activities across the construction sector.

BrainJuicer Group PLC added 4.7% to 154.00 pence after the market researcher recommended interim dividend of 0.6 pence per share will be paid on 30 October 2009 to shareholders on the register on 2 October 2009. The shares will become ex-dividend on 30 September 2009.

British Airways Plc declined 0.9% to 230.90 pence said chief executive Willie Walsh will tell world leaders at the U.N. climate summit on Tuesday the aviation industry could halve its carbon dioxide emissions by 2050, a spokesman for the airline said on Monday. But he declined to elaborate on how the industry will pay for the damage that environment will sustain in the mean time.

Chime Communications plc added 3.3% to 183.75 pence after the marketing group agreed to acquire sports marking and media agency Essentially for 8 pence a share or a total cost of £18 million.

CVS Group Plc surged 9.6% to 159.00 pence after the vet services supplier said for the year ended June 30 its operating profit rose to £7.0 million from £4.1 million last year. Revenue increased 23% to £76.6 million with same store sales increased 2%.

Dealogic (Holdings) plc surged 11.5% to 145.00 pence after the financial markets software provider after it reported better than expected second quarter results.

Emerald Energy plc fell 0.07% to 744.50 pence after the oil exploration company said it was satisfied with the progress in oil production in the Khurbet East field in Syria and that it looked forward to the results of the Yousefieh No.3 appraisal.

Findel plc declined 5.8% to 40.00 pence after the home shopping and educational supplies group said like-for-like sales for the first 23 weeks of the year decrease 5%.

Highland Gold Mining Limited added 7.5% to 78.25 pence after the gold miner said first-half revenues rose 3% to $78.8 million from $76.5 million a year ago. Net profit for the first-half rose 70% to $38.1 million compared to net profit of $22.4 million a year ago.

Imperial Tobacco Group PLC added 0.6% to 1,763.00 pence after the tobacco giant said that it confirms that the anticipated overall performance and financial position of the group for the financial year to September 30, 2009 remains in line with management''s expectations. According to a survey conducted by Reuters analysts on an average are expecting the company to report net profit of £1.61 billion on revenue of £7.7 billion for fiscal 2009.

ITV plc rose 2.3% to 47.69 pence after Ofcom said that the struggling broadcaster may be released from its obligation to broadcast regional news which may be loss leader.

JD Sports Fashion PLC decreased 5.0% to 570.00 pence after the retailer of sports and leisure wear said first-half revenues rose 8.4% to £324 million from £299 million a year ago. Net profit for the first-half rose 16% to £7.0 million or 14.35 pence per diluted share compared to net profit of £6.01 million or 12.45 pence per share a year ago.

Michelmersh Brick Holdings PLC fell 8.1% to 34.44 pence after the brickmaker said first-half revenues fell 28% to £9.1 million from £12.5 million a year ago. Net loss for the first-half was £457 million or 1.1 pence per diluted share compared to net loss of £483 million or 1.2 pence per share a year ago.

Minerva Plc soared 25% to 40.75 pence after it renegotiated its debt of £812 million that will free the commercial real estate developer from debt repayment till June 2011. The company did not disclose the revised terms of debt and the cost of debt rescheduling.

Mobile Streams Plc fell 5.9% to 4.94 pence after the company said that its operating earnings will breakeven in 2009.

Ricardo plc closed unchanged at 277.00 pence an engineering solutions provider said full-year revenues fell 1.7% to £178.8 million from £181.9 million a year ago. Net profit for the full-year fell 26.8% to £9.0 million or 28.6 pence per diluted share compared to net profit of £12.3 million or 25.3 pence per share a year ago.

Rio Tinto plc climbed 3.5% to 2,739.00 after the indebted mining giant said that it has entered into an agreement to sell Alcan Composites part of the Alcan Engineered Products division to Schweiter Technologies AG for $349 million. The transaction is expected to close by the end of the year.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 56 increased, 44 declined and 2 were unchanged.

United Utilities Group Plc decliners in the FTSE 100 index with a loss of 2.17% followed by losses in Man Group Plc of 1.97%, in Cable & Wireless Plc of 1.96%, in Rolls-Royce Group Plc of 1.94%, in The British Land Company Plc of 1.91%.

Carnival Plc led gainers in the FTSE 100 index with a rise of 5.00% followed by increase in Eurasian Natural Resources Corporation Plc of 4.41%, in Fresnillo Plc of 3.58%, in Old Mutual Plc of 2.86%, in Rio Tinto Plc of 2.40%.