News Column

FTSE 100 unmoved despite Sainsbury bid talk and RBS share surge

July 25, 2014

Nick Fletcher,

On an unusually busy Friday morning, there is a mix of corporate updates - good and bad - as well as takeover talk, but all of this is not enough to push leading shares into positive territory.

Taking the speculation first, J Sainsbury has added 6p to 323p on a report that the Qataris, holders of a near 26% stake as the legacy of a failed bid in 2007, could be interested in taking another tilt at the supermarket group. The idea was the Qataris were unconvinced by its current performance and new chief executive Mike Coupe, and were prepared to offer 500p a share. The report said they had approached the Sainsbury family to back a bid and they were also seeking to increase their stake to put more pressure on the board.

Royal Bank of Scotland has risen 39.5p to 368.3p after released better than expected results, ahead of schedule. That has helped Barclays climb 4.55p to 219.05p, and Lloyds Banking Group add 1.28p to 75.23p.

Elsewhere Vodafone is up 5.05p at 202.9p after it confirmed its outlook for the year despite a dip in first quarter revenue, thanks to a slowdown in Spain and South Africa.

But BSkyB has dropped 25.5p to 899.5p after it confirmed the 4.9bn purchase of Rupert Murdoch's pay-TV businesses in Germany and Italy. It will help pay for the deal with a placing of shares.

Meanwhile GlaxoSmithKline is down 25.5p at 14.44 as UBS cut from neutral to sell.

Overall, ahead of UK GDP figures, the FTSE 100 is down 3.29 points at 6818.17.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Guardian Web

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