Market Report: M&A speculation continues to swirl around Vodfone
Tuesday 11 February 2014
Vodafone was heavily traded yesterday as mergers and acquisitions (M&A) speculation continued to swirl around the under-pressure telecoms major.
It has reportedly made a €7bn (£5.8bn) bid for Spain’s largest cable operator Ono, after weeks of talk around a potential deal.
Vodafone will be keen to get a jump on its US rival, Liberty Global, which has also been linked to Ono, after reporting its seventh-consecutive quarter of falling revenue last week.
Alastair McCaig, a market analyst at IG, said: “In view of the billions that will still be left over in the pot, it seems unlikely this will be the last M&A activity for Vodafone in 2014.”
Scribblers at Goldman Sachs agree, rating the firm a buy – but they think Vodafone could also be an acquisition target. Last month the US telecoms giant AT&T was forced to deny speculation it was planning a bid, disqualifying it from making any moves for six months. Vodafone closed flat at 222p.
Buoyant gold and silver prices sent Fresnillo to the top of the Footsie, up 70p at 863.25p, while Randgold Resources added 106p to 4,528p. On the mid-cap index, African Barrick Gold also made big gains, rising 14.9p to 239p.
UBS tipped Anglo American’s Brazilian iron ore project Minas-Rio for big things, calling the site, due to start production at the end of this year, a “game changer”. Anglo dug up 21p to 1,501p.
After crude prices rallied last week, oilfield services provider Petrofac had an upgrade from HSBC to overweight, drilling up 37p to 1232.5p.
But gains on the benchmark index were tempered by uncertainty surrounding utilities.
Energy Secretary Ed Davey’s calls for an inquiry into gas profits at the “Big Six” providers sent British Gas-owner Centrica 5.3p lower to 308.8p, while SSE also slumped 6p to 1349.5p.
G4S was another loser, down 6.1p at 229p, after a downgrade from Panmure Gordon, which said there were “too many dark clouds on the horizon” for the outsourcing giant.
Hargreaves Lansdown continued to feel the effects of last week’s disappointing update, falling 49p to 1305p.
The FTSE 100 rose 19.87 points to reach 6,591.55.
- 1 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...