Market Report: Dixons and Carphone Warehouse surge as merger nears

 

Dixons and Carphone Warehouse surged on the mid-cap FTSE 250 index as their £3.7bn merger moved closer. The last major hurdle for the deal was cleared on Thursday when shareholders of both companies approved the tie-up. News filtered through to the markets, with both retailers’ shares rising. Dixons added 1.99p to 49.3p, while Carphone climbed 15p to 318p. Bar any last minute upsets, Dixons Carphone will start trading on 7 August.

The FTSE 100 dipped as traders digested news of the Malaysia Airlines attack in Ukraine. Companies with exposure to the region were hunted out. ITE Group, which organises conferences in Russia and Ukraine, fell 10.9p to 215p, while the Ukrainian copper miner Ferrexpo closed 2.4p lower at 135.5p.

Defensive stocks were also in demand, with Severn Trent rising 40p to 1926p and United Utilities up 12p at 894p. But some optimism crept back in the afternoon session and the Footsie ended 11.13 points down at 6,749.45.

The index was pulled higher by deals, both speculative and completed. The drugs group Shire’s last-minute merger with US rival AbbVie helped it shoot up by 189p to 4996p, while the expectation of a wave of consolidation in the European media sector sent ITV’s shares 7.4p higher to 202.5p and pushed BSkyB up 20p to 917.5p.

British Land added to the positivity after Barclays said the property developer could be worth £2bn more than it previously thought. The bank raised its target price, arguing that the company was set to benefit from rising office rents and property prices. British Land added 17p to 718p.

On the small-cap index, the Czech coal miner New World Resources fell 1p to 11.5p as it announced further plans to force a restructuring of its debt.

The failed bulletproof glass-maker Pentagon Protection resumed trading on the Alternative Investment Market as Yolo Leisure and Technology. The cash shell, backed by the former Leeds United owner Chris Akers and headed by a former Thomas Cook executive, said it was looking for deals in the travel sector. Nevertheless, Yolo’s shares slipped 2.5p to 2.75p on the first day.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Content Writer - Global Financial Services

£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Web Developer - PHP

£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Field Sales Consultant - Financial Services - OTE £65,000

£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Loan Underwriter

£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory
Ashes 2015: Alastair Cook not the only one to be caught in The Oval mindwarp

Cook not the only one to be caught in The Oval mindwarp

Aussie skipper Michael Clarke was lured into believing that what we witnessed at Edgbaston and Trent Bridge would continue in London, says Kevin Garside
Can Rafael Benitez get the best out of Gareth Bale at Real Madrid?

Can Benitez get the best out of Bale?

Back at the club he watched as a boy, the pressure is on Benitez to find a winning blend from Real's multiple talents. As La Liga begins, Pete Jenson asks if it will be enough to stop Barcelona
Athletics World Championships 2015: Beijing witnesses new stage in the Jessica Ennis-Hill and Katarina Johnson-Thompson heptathlon rivalry

Beijing witnesses new stage in the Jess and Kat rivalry

The last time the two British heptathletes competed, Ennis-Hill was on the way to Olympic gold and Johnson-Thompson was just a promising teenager. But a lot has happened in the following three years
Jeremy Corbyn: Joining a shrewd operator desperate for power as he visits the North East

Jeremy Corbyn interview: A shrewd operator desperate for power

His radical anti-austerity agenda has caught the imagination of the left and politically disaffected and set a staid Labour leadership election alight
Isis executes Palmyra antiquities chief: Defender of ancient city's past was killed for protecting its future

Isis executes Palmyra antiquities chief

Robert Fisk on the defender of the ancient city's past who was killed for protecting its future