Market Report: BG Group nosedive sparks takeover talk

Huge share price falls get the City chattering about takeovers. The 13 per cent slump in BG Group's share price sparked just that yesterday.Dealers in the square mile were already gossiping by lunch time that the oil and gas group could be a takeover target for Shell.

That rumour has done the rounds before. Back in 2010 it was reported there could be a deal.

Shares in BG Group tanked after the firm disappointed the market with a production forecast downgrade. It told the City not to expect any growth next year either. The news came as a shock to investors as the company had a strong record of good dividends and growth.

But the market was certainly looking at taking advantage of BG's huge share price drop. Broker Hargreaves Lansdown announced 96 per cent of its client trades on the shares were buys.

But scribes at Investec gave it a sell rating and a share price target of 1,000p.

BG's shares plummeted 182p to 1,147.5p. Shell's shares lost 13p to 2,190.5p.

On the flip side, shares in Tullow Oil were gushing after reports emerged it has made discoveries in Kenya. Analysts at Liberum Capital gave its shares a hold rating following the reports. Its shares spurted up 22p to 1,404p.

Wall Street reopened after a two-day break following the destructive superstorm Sandy. Volumes were still lacklustre but at least there wasn't a repeat of what happened after the UK's Great Storm of 1987. The hurricane in Britain happened to be followed by Black Monday – a global stock market crash.

Investors had thought the FTSE 100 would lift during early afternoon trading when the US returned. But the benchmark index was not able to hold onto yesterday's gains.

Investor concerns over the continuing eurozone crisis meant the blue-chip index lost 67.20 points to 5,782.7.

Utility stocks were also a drag on the index. Severn Trent and United Utilities were down 45p to 1,606p and 18p to 677p respectively, while UK water and sewerage services group Pennon dropped 7.5p to 717p.

Back to the subject of takeover rumours, the long-mooted Informa deal was still being touted about. Dealers reckon a deal could happen soon. Rival publisher UBM, up 8p to 699.5p, has been in the frame, as has German publisher Axel Springer and private-equity bidders. The business publishing and events group ended up 4.6p at 400.2p.

The fizzy-drinks merger of Britvic and AG Barr is "at an advanced stage of discussions", but the pair have another extension until 28 November to agree the £1.4bn deal. AG Barr fell 3p to 445p but Britvic rose 0.8p to 359.2p.

On the small caps, credit card insurer CPP revealed it has had a bid approach from Affinion Group which owns card-protection brand Sentinel. Its shares gained 8.5p to 29.5p.

Over on AIM, jeweller to the stars Theo Fennell's talks with potential buyer EME Capital have got an extension from the Takeover Panel. The potential deal now has until the end of November. Theo Fennell's shares were static at 13p

There was an update from gold miner Centamin on its troubles in Egypt. The previous day it was forced to suspend its shares on news that a court ruling declared its rights to operate its flagship Sukari mine invalid.

It yesterday said it will appeal against the ruling.

A Goldman Sachs analyst note said "the co-operation of the Egyptian Mineral Resource Authority to ensure continuing operations at the mine and no statement from the court that the concession agreement is invalid should be viewed as positive in what remains an unclear situation." Centamin's shares remain suspended at 63.82p.

News
peoplePaper attempts to defend itself
Voices
voicesWe desperately need men to be feminists too
Life and Style
food + drink
Arts and Entertainment
British actor Idris Elba is also a DJ and rapper who played Ibiza last summer
film
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
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

IT Project manager - Web E-commerce

£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits