Market Report: AZ Electronic Materials is about to bid auf Wiedersehen

 

In the midst of London’s stock market IPO boom, one mid-tier technology group is about to bid auf Wiedersehen.

AZ Electronic Materials, the maker of chemical components for flat screens including Apple’s iPad, jumped more than 50 per cent to the top of the table on news that the German drugs and chemicals giant Merck is to buy it in a £1.6bn, 403.5p-a-share offer – a 53 per cent premium to the previous day’s close.

Analysts didn’t expect another rival bid to get in the way and the news is welcomed by shareholders, who have had tough year – its shares fell 35 per cent when it issued a profit warning in April. The deal is also good news for the chief executive Geoff Wild, who has shares and long-term awards that could be worth more than £6m.

AZ added 132.1p – or 50.25 per cent – to 395p.

The overall market was still cautious as concern remained that the Fed would begin to wind down its quantitative easing programme. The FTSE 100 was broadly flat after four days of large falls but still ended the day in the red, down 11.64 at 6,498.33.

After more than a week of City downgrades for Tesco, there was no let up the day after its poor third-quarter results. Analysts continued to issue downgrades and it fell 6.85p to 333.15p.

After days in the dog-house, miners perked up as bargain hunters saw a chance to pick up stocks cheaply and Vedanta Resources rose 2p to 848p.

Analysts at Investec appraised gold miners, and, despite the falling gold price, said to buy Randgold Resources at 5,095p – which declined 1p to 4,039p – and rated mid-tier listed and Egypt-focused Centamin a buy at 54p. It added 4.02p to 42.6p.

The insurer Phoenix fell 42.5p to 661.5p on the news after the markets closed last night that private equity group TDR Capital is selling half of its 16 per cent stake.

Polymetal International lost 23.2p to 477.3p after the miner said would not pay special dividends.

Analysts at FinnCap rated Aim-listed Gem Diamonds a buy with a target price of 190p and it shone 4.5p brighter at 148p. Also on Aim, Rare Earth Minerals said it had found lithium at its project in Mexico and it fizzed up 0.08p to 0.74p.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA celebration of British elections
  • Get to the point
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

Guru Careers: Digital Marketing Exec / Online Marketing Executive

£35 - 40k: Guru Careers: Our client has a new role for a Digital Marketing Exe...

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Guru Careers: Management Accountant

£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...

Day In a Page

General Election 2015: ‘We will not sit down with Nicola Sturgeon’, says Ed Balls

'We will not sit down with Nicola Sturgeon'

In an exclusive interview, Ed Balls says he won't negotiate his first Budget with SNP MPs - even if Labour need their votes to secure its passage
VE Day 70th anniversary: How ordinary Britons celebrated the end of war in Europe

How ordinary Britons celebrated VE Day

Our perception of VE Day usually involves crowds of giddy Britons casting off the shackles of war with gay abandon. The truth was more nuanced
They came in with William Caxton's printing press, but typefaces still matter in the digital age

Typefaces still matter in the digital age

A new typeface once took years to create, now thousands are available at the click of a drop-down menu. So why do most of us still rely on the old classics, asks Meg Carter?
Discovery of 'missing link' between the two main life-forms on Earth could explain evolution of animals, say scientists

'Missing link' between Earth's two life-forms found

New microbial species tells us something about our dark past, say scientists
The Pan Am Experience is a 'flight' back to the 1970s that never takes off - at least, not literally

Pan Am Experience: A 'flight' back to the 70s

Tim Walker checks in and checks out a four-hour journey with a difference
Humans aren't alone in indulging in politics - it's everywhere in the animal world

Humans aren't alone in indulging in politics

Voting, mutual back-scratching, coups and charismatic leaders - it's everywhere in the animal world
Crisp sales are in decline - but this tasty trivia might tempt back the turncoats

Crisp sales are in decline

As a nation we're filling up on popcorn and pitta chips and forsaking their potato-based predecessors
Ronald McDonald the muse? Why Banksy, Ron English and Keith Coventry are lovin' Maccy D's

Ronald McDonald the muse

A new wave of artists is taking inspiration from the fast food chain
13 best picnic blankets

13 best picnic blankets

Dine al fresco without the grass stains and damp bottoms with something from our pick of picnic rugs
Barcelona 3 Bayern Munich 0 player ratings: Lionel Messi scores twice - but does he score highest in our ratings?

Barcelona vs Bayern Munich player ratings

Lionel Messi scores twice - but does he score highest in our ratings?
Martin Guptill: Explosive New Zealand batsman who sets the range for Kiwis' big guns

Explosive batsman who sets the range for Kiwis' big guns

Martin Guptill has smashed early runs for Derbyshire and tells Richard Edwards to expect more from the 'freakish' Brendon McCullum and his buoyant team during their tour of England
General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'