US deal talk gets Vodafone buzzing
SOMETHING has got to give at Vodafone. City telephone lines buzzed with hot gossip about the mobile phone giant - and not for the first time this week.
Its shares rallied strongly from 121¾p to touch 128¾p on talk that US firm Verizon wants to buy its 45% stake in Verizon Wireless in a deal that could be worth up to £28bn. The close was ¾p better at 124¼p and turnover swelled to almost 664m, some 87% higher than Tuesday's total.
Yesterday's story follows growing speculation that a consortium including Verizon, Telefonica of Spain and US private equity firms are working on a blockbuster break-up bid of Vodafone, which values the UK firm at 160p per share, or £96bn.
Verizon has apparently held talks with would-be financial partners after a previous attempt to purchase the stake was rebuffed. Last month it repeated its ambition after AT&T announced a £37bn proposal to acquire BellSouth.
An early 50-point gain on Wall Street and Vodafone's movements helped the Footsie pick itself up off the floor. It rallied from 42 points down to finish 15.7 off at 6000.8.
The Dow responded to news that the US trade deficit had narrowed 4.1% to $665.7bn in February from a revised record of $68.59bn in January.
All Bar One and O'Neills pubs group Mitchells & Butlers lost an 8¾p gain to close 16¼p lower at 463½p.
Late rumours suggested that a tentative offer of 525p a share from Iranian born property tycoon Robert Tchenguiz and 'friends' had been strongly rejected by the M&B board. Another jackanory said that Tchenguiz, who already owns 868 pubs including the Slug & Lettuce and Hogshead brands, has walked away.
• ISA SAVINGS
• CREDIT CARDS
• LOANS
• MORTGAGES
• INSURANCE
• GAS & ELECTRICITY
Silk Cut maker Gallaher was puffed 17½p higher to 845½p by revived Japan Tobacco bid rumours.
Philatelics are no longer just nerdy kids, geeks or loners. Fund managers have become big collectors because stamps have long been seen as an 'alternative asset class'. There are about 30m collectors around the world spending £6bn a year in a safe haven market which is not buffeted by equity markets or house prices. Stanley Gibbons, the market leader in rare stamps, which is celebrating its 150th anniversary, has its own Rare Stamp Offshore Investment Fund which offers City investors a piece of the action.
The bullish tenor of chairman Paul Fraser's statement at the annual meeting yesterday lifted its shares 18½p to a record 158p. Shareholders were told that the British stamp dealer enjoyed its best ever first quarter. Its internet site had more than 2m visitors in the last year and 40% of total sales are made overseas.
Gibbons sells stamps valued at £50,000 to £100,000 every month. The most expensive sale in the UK to date was a first day cover of 10 Penny Blacks to the Queen for £250,000 in 2000. It sells autographs too, and a handwritten notebook by Harry Potter author JK Rowling went under the hammer for £25,000 last June.
Despite further gains in commodity prices on concern about the deteriorating uranium enrichment crisis between Iran and the US, traders decided to lock in some mining profits. Antofagasta shed 60p at 2304p and Xstrata lost 49p to 1956p.
Recent news that the Dixons brand name will soon disappear after almost 70 years to be replaced by Currys. digital left a frown on many a fund manager's face.
AEC Education, which provides educational programmes and solutions in Singapore and Malaysia, jumped 8p to 24½p on news of an approach which could lead to a reverse takeover. Dealers suggested the take out price could be 35p.
Placed on Aim at 180p by broker Teather & Greenwood, City of London Investment Group raced up to close at 196½p, for a useful premium of 16½p. The emerging market asset management group has £1.5bn funds under management.
Abacus, a European electronic components distributor, jumped 10¾p to 156p. It has acquired Axess Technology, a privately owned electronic distributor in France.
• BOSS Tim Cockcroft's shock decision to resign and move to Kaupthing, the Icelandic group which owns Singer & Friedlander, has apparently left KBC Peel Hunt in disarray. Paul Wedge, joint head of institutional sales, is rumoured to have followed Cockcroft out of the door. Others could follow. Cockcroft is now on six months 'gardening leave' before he returns to set up a new venture - market-making perhaps - at Kaupthing.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mail Online takes a tour of Gatwick's modern EV charging station
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- How to invest for income and growth: SAINTS' James Dow
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Land Rover unveil newest all-electric Range Rover SUV
- Cerillion boosted by $11.1m contract with provider of...
- MARKET REPORT: FTSE falters despite UBS call to buy...
- Anglo strikes out alone - but can it survive a bid...
- Anglo American rejects rival BHP's £34bn second takeover bid
- Police not interested in shoplifting, says M&S as thefts...
- London's 'Mr Super Prime' to take centre stage in...
- US owner of Boots steps up efforts to find a buyer for...
- Phoenix Group finance chief to step down from insurer
- A MILLION more people have taken on mortgages they will...
- UK Government sells another chunk of NatWest shares
- Evri issues warning over huge rise in smishing scams -...
- Diploma shares top FTSE 100 risers after firm raises...
- How reliable are the most popular used cars? Here's how...
- Former Chancellor Nadhim Zahawi to chair Very Group
- Taxpayer stake in NatWest falls below 27% as Treasury...
- I repeatedly bail out my partner from his financial...
- BUSINESS LIVE: Nadhim Zahawi to chair The Very Group;...
- Used car marketplace Cazoo looking for buyers as it nears...