Market Report: Shire tumbles amid concerns of new restrictions on American corporates buying overseas companies

 

Concerns that the M&A boom could be over worried the City yesterday.

More than $100bn of deals were pulled in the US on Tuesday and concerns about US laws on tax bases saw shares in Shire wobble. The drugs specialist, which is being bought by US-based AbbVie, tumbled 205p to 4,671p amid concerns of new restrictions on American corporates buying overseas companies to avoid US taxes. News that the US drugstore Walgreen won’t move its tax base here after completing its deal to buy the remainder of Alliance Boots also pushed the issue back into the spotlight.

Stocks that were recently buoyed by takeover talk slumped. AstraZeneca, the drug giant that batted away a bid from Pfizer in May, fell 155.5p to 4,190p and Smith & Nephew, the maker of knee replacements that has long been a takeover candidate, fell 44p to 1,020p – taking the wooden spoon.

But one deal that has finally gone through is the £3.7bn merger of the retailers Dixons and Carphone Warehouse. Dixons shareholders will receive 0.155 of a new Dixons Carphone share. Dixons was unmoved and closed last night at 52.95p and Carphone lifted 1.5p to 343.2p. The new entity will begin trading today. The Eastern European drinks group Stock Spirits is set to take the vacant spot in the FTSE 250 but it closed down 1.5p to 308.5p yesterday.

The wider market was hit by increased fears about further violence in Russia and Ukraine and poorer than expected data from Germany.

The FTSE 100 tumbled 46.32 points to 6,636.16 as traders feared the bull run could be coming to an end.

One of the few risers was the metal miner Fresnillo after its results on Tuesday were better than expected. The share price rise was also attributed to the large amount of short sellers that have been borrowing the stock – causing a short squeeze. Fresnillo was top of the table, up 58.5p to 985p.

The worst faller on Aim was Hotel Corporation after administrators were appointed to a hotel group in which it holds a 49.92 per cent stake. It said it had already written down the value to nil previously but shares fell 0.42p to 0.78p.

Start your day with The Independent, sign up for daily news emails
Sport
sportWWE latest including Sting vs Triple H, Brock Lesnar vs Roman Reigns and The Undertaker vs Bray Wyatt
Arts and Entertainment
Louis Theroux: By Reason of Insanity takes him behind the bars again
tvBy Reason of Insanity, TV review
Arts and Entertainment
Cassetteboy's latest video is called Emperor's New Clothes rap
videoThe political parody genius duo strike again with new video
Arts and Entertainment
tvPoldark, TV review
ebooks
ebooksA special investigation by Andy McSmith
  • 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

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Ashdown Group: Learning and Development Programme Manager

£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor
How to make your own Easter egg: Willie Harcourt-Cooze shares his chocolate recipes

How to make your own Easter egg

Willie Harcourt-Cooze talks about his love affair with 'cacao' - and creates an Easter egg especially for The Independent on Sunday
Bill Granger recipes: Our chef declares barbecue season open with his twist on a tradtional Easter Sunday lamb lunch

Bill Granger's twist on Easter Sunday lunch

Next weekend, our chef plans to return to his Aussie roots by firing up the barbecue
Joe Marler: 'It's the way I think the game should be played'

Joe Marler: 'It's the way I think the game should be played'

The England prop relives the highs and lows of last Saturday's remarkable afternoon of Six Nations rugby
Cricket World Cup 2015: Has the success of the tournament spelt the end for Test matches?

Cricket World Cup 2015

Has the success of the tournament spelt the end for Test matches?
The Last Word: Justin Gatlin knows the price of everything, the value of nothing

Michael Calvin's Last Word

Justin Gatlin knows the price of everything, the value of nothing