Burberry in fashion after €3.7bn Bulgari deal

Burberry was in vogue last night, matching its highest price on record, as the luxury goods sector was boosted by news of a €3.7bn (£3.2bn) takeover and claims it could become a "trillion-dollar industry" in less than 15 years.

The upmarket retailer shot up 42p to 1,200p after its French peer LVMH announced it was acquiring the Italian jewellery group Bulgari in an all-share deal which values it at about 60 per cent above its average share price for the past month.

Market voices said the move raises the possibility of further consolidation among the luxury companies, with one trader saying the takeover "puts the spotlight back on to Burberry" – itself frequently the subject of bid speculation over the past few years.

However, analysts from Citigroup were not completely convinced, saying that despite the fact it may "signal renewed merger-and-acquisition activity in the sector", they "believe that there is one less natural buyer now".

Burberry was also helped forwards by Goldman Sachs, which repeated its "buy" rating on the group and raised its target price by 66.2p to 1,452p.

In a comprehensive note, the broker's analysts said the "sector is a levered play on global economic realignment" and predicted there would be "600 million more luxury goods consumers by 2025 [which] should see [it] grow... into a trillion-dollar industry".

Adding that they expected "China to remain the engine of luxury goods growth", the analysts compared the industry in the country to "Japan's in 1997, from which point it grew 180 per cent to its peak".

The FTSE 100 seemed certain to finish in positive territory, but a retreat in the final few hours of trading meant it was 16.61 points lower by the bell at 5,973.78. Noting that the blue-chip index "seems to be becoming more and more irrational and unpredictable", Capital Spreads' Angus Campbell said it is "hard to push on to new ground and maintain gains when the price of oil remains supported by the unrest in the oil-producing nations".

The biggest move came at the bottom, where Inmarsat was floundering after plummeting 91.5p to 593p – a fall of more than 13 per cent. The mobile satellite group announced its final results, with its figures for the final three months disappointing.

Despite saying the company "has a very bright future", Prime Market's Richard Curr said the update "opens up a short selling opportunity", adding that "the comparative volatility of the shares marks Inmarsat out as an ideal day and short-term trading instrument".

Intertek took pole position, gaining 95p to 1,994p, after the testing group's final results, in which it managed to beat predictions with its annual profits rising 11 per cent. There was praise as well for the company's announcement of a £450m deal to buy the services company Moody International, and Seymour Pierce's Kevin Lapwood described it as "an important strategic move" which "considerably enhances [its] global position in technical safety services and systems certification".



rumours have been sweeping the market for the past few weeks that Forth Ports was being lined up for a takeover bid, and yesterday they were shown to be true as the UK's only listed ports group revealed it had received a £745m approach. The offer, worth 1,630p a share, came from the group's shareholder Arcus European Infrastructure Fund, part of the consortium that made a failed bid last year, and its new attempt lifted Forth 82p to 1,605p.

Also doing well was Hansen Transmissions, with the gearbox manufacturer 1.3p ahead at 41.3p as HSBC reiterated its "overweight" advice and kept a bullish price target of 85p. Describing the group as "a volume-recovery and margin-expansion story", the broker's analysts said it was "the best way to play the India and China theme of any Western renewable company".

Michael Page was among the day's losers on the second line, slipping back 11p to 524.5p, despite the recruitment group seeing its operating profit increase by more than threefold last year. However, the improvement was largely expected given how tough 2009 was, and the group did sound cautious over its outlook in the UK.

Back on the top-tier index, and Petrofac crept up 9p to 1,475p in the wake of its final results. The oil services group's net profit beat market expectations while its update prompted analysts from Evolution Securities to increase its advice to "add", pointing out that it "looks much better value than at the start of the year".



After bid rumours sent it soaring, Kalahari Minerals confirmed it was engaged in discussions over a potential offer, and it finished 24.75p stronger at 285p on the Alternative Investment Market. The uranium miner refused to announce whom it was actually talking to, but did say it was still involved in a separate dialogue over potentially combining the Husab deposit in Namibia (owned by Extract Resources, of which it holds more than 40 per cent) and Rio Tinto's Rössing mine, with the two projects in close proximity.

PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Sport
Luis Suarez looks towards the crowd during the 2-1 victory over England
sport
Life and Style
Cheesecake frozen yoghurt by Constance and Mathilde Lorenzi
food + drinkThink outside the cool box for this summer’s frozen treats
News
John Barrowman kisses his male “bride” at a mock Gretna Green during the Commonwealth Games opening ceremony
peopleBarrowman's opening ceremony message to Commonwealth countries where he would be sent to prison for being gay
Sport
Sir Bradley Wiggins removes his silver medal after the podium ceremony for the men’s 4,000m team pursuit in Glasgow yesterday
Commonwealth games Disappointment for Sir Bradley in team pursuit final as England are forced to settle for silver
Sport
Alistair Brownlee (right) celebrates with his gold medal after winning the men’s triathlon alongside brother Jonny (left), who got silver
England's Jodie Stimpson won the women’s triathlon in the morning
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trade Desk Specialist (Linux, Windows, FIX, Finance, Networks)

£60000 per annum: Harrington Starr: Trade Desk Specialist (Linux, Windows, FIX...

Associate CXL Consultant

£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

Project Manager - ETRM/CTRM

£70000 - £90000 per annum + Job Satisfaction: Harrington Starr: Project Manage...

C#.NET Developer

£300 - £350 per day: Harrington Starr: C#.NET Developer C#, WPF,BLL,MVVM, SOA...

Day In a Page

Backhanders, bribery and abuses of power have soared in China as economy surges

Bribery and abuses of power soar in China

The bribery is fuelled by the surge in China's economy but the rules of corruption are subtle and unspoken, finds Evan Osnos, as he learns the dark arts from a master
Commonwealth Games 2014: Highland terriers stole the show at the opening ceremony

Highland terriers steal the show at opening ceremony

Gillian Orr explores why a dog loved by film stars and presidents is finally having its day
German art world rocked as artists use renowned fat sculpture to distil schnapps

Brewing the fat from artwork angers widow of sculptor

Part of Joseph Beuys' 1982 sculpture 'Fettecke' used to distil schnapps
BBC's The Secret History of Our Streets reveals a fascinating window into Britain's past

BBC takes viewers back down memory lane

The Secret History of Our Streets, which returns with three films looking at Scottish streets, is the inverse of Benefits Street - delivering warmth instead of cynicism
Joe, film review: Nicolas Cage delivers an astonishing performance in low budget drama

Nicolas Cage shines in low-budget drama Joe

Cage plays an ex-con in David Gordon Green's independent drama, which has been adapted from a novel by Larry Brown
How to make your own gourmet ice lollies, granitas, slushy cocktails and frozen yoghurt

Make your own ice lollies and frozen yoghurt

Think outside the cool box for this summer's tempting frozen treats
Ford Fiesta is UK's most popular car of all-time, with sales topping 4.1 million since 1976

Fiesta is UK's most popular car of all-time

Sales have topped 4.1 million since 1976. To celebrate this milestone, four Independent writers recall their Fiestas with pride
10 best reed diffusers

Heaven scent: 10 best reed diffusers

Keep your rooms smelling summery and fresh with one of these subtle but distinctive home fragrances that’ll last you months
Commonwealth Games 2014: Female boxers set to compete for first time

Female boxers set to compete at Commonwealth Games for first time

There’s no favourites and with no headguards anything could happen
Five things we’ve learned so far about Manchester United under Louis van Gaal

Five things we’ve learned so far about United under Van Gaal

It’s impossible to avoid the impression that the Dutch manager is playing to the gallery a little
Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform