Market report: Bigger than expected special dividend predicted for ITV shares

The broker said investors were expecting ITV, up 0.8p at 264.5p

(PA)

Investors tuned into ITV shares after Nomura suggested the broadcaster-cum-producer will pay out a bigger special dividend than expected. The broker said investors were expecting ITV, up 0.8p at 264.5p, to dole out £250m, but it is predicting a chunkier payout given that it has not made a big acquisition since last March, when it snapped up Talpa Media, the producer behind The Voice, for £355m.

“Following strong cash generation and the lack of recent significant M&A, we believe there is heightened potential for a special dividend to exceed £250m,” said analyst William Mairs.

Any increase revealed in next month’s annual results would go down well with largest shareholder Liberty Global, which has long been considered a potential buyer of the company.

ITV underperformed the wider market as the FTSE 100 rebounded 61.62 points, or 1 per cent, to 5,898.76 thanks to a rally from commodities.

It was an important day for Anglo American, which made a big stride towards avoiding relegation from the blue-chip index. It soared 54.6p or 20 per cent to 328.3p, its biggest daily jump in more than seven years, as the price of copper was boosted by a weaker dollar.

Other miners followed suit, with Glencore up 13.73p to 99.68p, Antofagasta up 54.7p to 430.3p, and Anglo-Aussie iron ore giants BHP Billiton and Rio Tinto both up more than 10 per cent.

Roadside recovery group AA, which launched its insurance underwriting business last week, accelerated 18.8p to 294.4p on its solid full-year update, in which the FTSE 250 group said results would be in line with expectations.

On AIM, business incubator Imperial Innovations climbed 20.5p to 420.5p as it raised £100m in a share placing at a healthy premium for another investing spree.

Buyers chased Satellite Solutions Worldwide, the satellite broadband provider backed by property tycoon Nick Candy, 0.83p higher to 5.95p, while Accesso Technology Group leapt 42.5p to new highs of 895p when the theme park ticketing specialist said it would comfortably meet full-year expectations.