Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FTSE jumps on bid activity; Pfizer calls time on Astra

FTSE jumps on bid activity; Pfizer calls time on Astra

InterContinental Hotels Group (IHG) has helped to drive the FTSE 100 higher after reports it had rejected a secret £6 billion US takeover bid.

InterContinental jumped 125p, or 5.6%, to £23.51 on the Sky News report, which claimed the bid, from an unidentified source, had been rejected as too low. Sky said the hotel group, the FTSE 100's biggest riser this morning, was braced for the bidder to return.

The FTSE 100 rose 21 points, or 0.3%, to 6,837, helped too by elections in the Ukraine that passed without escalation of political tensions, and European election results that showed fringe parties would remain a clear minority in the European Union parliament.

AstraZeneca (AZN) was meanwhile the FTSE 100's biggest faller as US rival Pfizer announced it had abandoned its bid for the pharmaceutical giant. Pfizer had a deadline of Monday evening to make a further approach after a series of bids for AstraZeneca had failed.

It said in a statement: 'Following the AstraZeneca board's rejection of the proposal, Pfizer announces that it does not intend to make an offer.'

AstraZeneca chairman Leif Johansson said: 'We welcome the opportunity to continue building on the momentum we have already demonstrated as an independent company.' AstraZeneca shares fell 95p, or 2.2%, to £42.34 on the news.

FTSE 250 stock Aveva Group (AVV) jumped a huge 23p, or 11.1%, to £24.00 after the company, which supplies IT services to the oil and gas sector, announced better-than-expected results. Ophir Energy (OPHR) was meanwhile the biggest mid cap faller, shedding 16.1p, or 6.2%, after the oil and gas group announced disappointing results from a drilling exercise off the shore of Gabon. 'The prospect could have been worth 60p if successful; there may have been 10p to 20p in the price,' said analysts at Liberum.

Debt-ridden FTSE Small Cap stock Punch Taverns (PUB) plunged 26% to 10.8p after announcing a restructuring of its debt. It is the second round of restructuring for the troubled pub owner, which is looking to reduce £2.3 billion of debt built up before it was hit hard by the downturn.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter