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.

PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Sport
CSKA Moscow celebrate after equalising with a late penalty
football

Arts and Entertainment
music
Life and Style
Designer Oscar de la Renta takes a bow after showing his Spring 2015 collection in September, his last show before his death
fashionThe passing of the legendary designer has left a vacancy: couturier to America’s royalty, says fashion editor Alexander Fury
Life and Style
tech

Company reveals $542m investment in start-up building 'a rocket ship for the mind'

News
Bourgogne wine maker Laboure-Roi vice president Thibault Garin (L) offers the company's 2013 Beaujolais Nouveau wine to the guest in the wine spa at the Hakone Yunessun spa resort facilities in Hakone town, Kanagawa prefecture, some 100-kilometre west of Tokyo
i100
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

Helpdesk Analyst

£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...

Senior Helpdesk Analyst / Service Desk Co-ordinator

£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...

Senior Pensions Administrator

£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...

Corporate Actions Administrator / Operations Administrator

£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...

Day In a Page

Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
How to Get Away with Murder: Shonda Rhimes reinvents the legal drama

How to Get Away with Murder

Shonda Rhimes reinvents the legal drama
A cup of tea is every worker's right

Hard to swallow

Three hospitals in Leicester have banned their staff from drinking tea and coffee in public areas. Christopher Hirst explains why he thinks that a cuppa is every worker's right
Which animals are nearly extinct?

Which animals are nearly extinct?

Conservationists in Kenya are in mourning after the death of a white northern rhino, which has left the species with a single male. These are the other species on the brink
12 best children's shoes

Perfect for leaf-kicking: 12 best children's shoes

Find footwear perfect to keep kids' feet protected this autumn
Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Let's talk about loss

We need to talk about loss

Secrecy and silence surround stillbirth
Will there be an all-female mission to Mars?

Will there be an all-female mission to Mars?

Women may be better suited to space travel than men are
Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

'They poured water on, then electrified me...'

If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
James Wharton: The former Guard now fighting discrimination against gay soldiers

The former Guard now fighting discrimination against gay soldiers

Life after the Army has brought new battles for the LGBT activist James Wharton
Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

Panic over Ebola threatens to infect the midterms

Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
Premier League coaches join the RSC to swap the tricks of their trades

Darling, you were fabulous! But offside...

Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why