Market Report: Springer sale puts focus on Informa

News of a €3bn (£2.6bn) takeover of a German publisher yesterday pushed punters towards Informa. The world's second-largest publisher of scientific research journals, Springer Science + Business Media, has been bought by the private equity firm BC Partners.

Springer Science, which has been sold by EQT and the Government of Singapore Investment Corporation, has long been seen as a good fit with the publisher Informa. Springer is a rival to the Anglo-Dutch group Reed Elsevier, and Informa has been linked with the group for years.

Informa and Springer have been involved in numerous takeover chats over the past 10 years. Springer bid for Informa in 2006 and Informa made an offer for Springer in 2009, but no deal could be agreed. Investors decided the BC Partners deal could mean future bid activity in the sector, and Informa produced a 17.4p gain to 495.1p.

Fellow UK mid-tier publisher UBM was also up. The shares advanced 18p to 685.5p, which coincided with a note from analysts at Liberum Capital who recommended buying the stock. Liberum said UBM has "drifted off over the past month", and is down by around 10 per cent in that time, but offers a "structurally growing, attractive business that is attractively valued". Its analysts gave it a price target of 890p.

Across the wider market, uncertainty remained ahead of a statement, due out after the London market closed, by the US Federal Reserve chairman, Ben Bernanke, on stimulus measures. The FTSE 100 index declined 25.39 points to 6,348.82, with miners and banks both losers.

Some bad news for Australians was deemed good news for the City as a jobs cull in Perth by Rio Tinto pushed the shares up in early trading – bucking the trend of other mining stock.

The iron ore miner said it had laid off about 50 senior staff at its regional headquarters in Western Australia. The job losses are part of a cost-cutting and restructuring plan started last month by Andrew Harding, Rio Tinto's new head of iron ore and replacement for Sam Walsh, who has become chief executive.

Brenda Kelly, senior market strategist at IG, said the fact Rio was cost-cutting by getting rid of senior staff made it "attractive". Iron ore prices hit an eighth-month low last month but have since picked up, and the rise in iron ore prices could also be a reason to buy the stock, analysts suggested.

Elsewhere, Citigroup added Rio to its list of preferred stocks. But by the close the digger had joined all the other mining and financial stocks that were out of favour amid concerns of global economic uncertainty, and Rio finished 10.5p worse off at 2,800.5p.

Top of the pile on the benchmark index were consumer goods groups, with Tesco up 8.7p to 344.6p and the Johnnie Walker whisky owner Diageo 39.5p better off at 1,925.5p.

BAE Systems got a boost from chat about new contracts at the Paris Air Show for a second day. But it was also the subject of vague rumours that a merger with EADS could end up back on the cards, despite it being denied by EADS yesterday. BAE soared 7.6p to 403.3p.

ITV's purchase of US television producer Thinkfactory Media helped the broadcaster to gain 1.4p to 139.1p. ITV has paid $30m (£19m) for a 65 per cent stake in the group, which makes reality, entertainment and drama shows.

The generator giant Aggreko got the wooden spoon after admitting its profits could be flat this year. The temporary power supplier's spark went out as it lost 92p to 1,660p.

Back on the mid-tier index, Spirent Communications advanced 5p to 135.4p after a buy note from Bank of America Merrill Lynch, which has begun covering the company.

The software firm Micro Focus was buoyed by hopes it will begin buying up other companies. It also reported rising profits, and the shares rose 62.5p to 709.5p.

On Aim, the retail investor favourite Gulf Keystone Petroleum said it had started drilling at its Shaikan field in Iraq, but the shares slipped 0.5p to 151.5p.

The Aim tiddler MediaZest said it had paid down debt, and forecast that full-year results will be about the same as last year. The digital "out-of-home" advertising company has proposed a share placing to raise about £360,000 and the shares ticked up 0.03p to 0.22p.

The security consultant Falanx will start trading tomorrow, having raised around £595,000 on Aim.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
News
ebooksNow available in paperback
Life and Style
tech
News
The 67P/CG comet as seen from the Philae lander
scienceThe most important scientific breakthroughs of 2014
Arts and Entertainment
Ian McKellen as Gandalf in The Hobbit: The Battle Of The Five Armies
film
Arts and Entertainment
Sarah Koenig, creator of popular podcast Serial, which is to be broadcast by the BBC
tvReview: The secret to the programme's success is that it allows its audience to play detective
News
Ruby Wax has previously written about her mental health problems in her book Sane New World
people
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

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Ashdown Group: Java Developer - Hertfordshire - £47,000 + bonus + benefits

£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...

Ashdown Group: Direct Marketing Manager - B2C, Financial Services - Slough

£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas