Yesterday's trading: Taylor Wimpey debt deal buzz
Patience is a virtue. Ask any Taylor Wimpey shareholder. They have been waiting in vain for months for the company - Britain's largest housebuilder by the number of homes built - to renegotiate its £1.9bn debt mountain.
Thin pickings: Rate cut could not excite traders
The group had warned last year that it was likely to breach interest cover covenants in January 2009 if it could not reach a deferral agreement with its lenders.
In December it then said it had won vital breathing space to complete refinancing talks before the end of March. Like Diana Ross, we're all still waiting.
In the meantime, the uncertainty demolished its share price to a record low of 4½p. But buyers were back on side yesterday as rumours from a man in a hard hat suggested that an agreement had finally been reached. The shares firmed 1¼p to 17p on turnover of 12m shares.
Dealers have dismissed speculation that a debt-for-equity swap could form part of any deal. Struggling banks certainly do not want a housebuilder on their books in the current environment.
Word is Taylor Wimpey's lenders will provide it with a flexible 18-month bridge facility on its debt which can be extended until 2011 if necessary.
The Taylor Wimpey debt agreement rumour and confirmation of a half a percentage rate cut in UK interest rates to a record low of 1% helped housebuilders take Wednesday's good gains a stage further. Barratt Developments jumped 4¾p more to 78¼p and Berkeley Group a further 26½p to 826½p.
The fifth UK rate cut since last October left the Footsie unimpressed. Having already been well discounted, it prompted profit-taking. The index traded 95 points lower before rallying strongly to close 0.33 points up at 4228.93. Wall Street slumped 111 points at the outset on news that US initial jobless claims rose 35,000 to a seasonally adjusted 626,000 in the week ended January 31, to the highest level in 26 years.
Dealers in New York are now looking for a drop in today's non-farm payroll jobs of 500,000 and for unemployment to be 7.4%.
Buying ahead of Monday's full-year results helped Barclays add 3.1p at 100p. JP Morgan remains underweight and has lowered its price target to 114p from 150p.
Online gaming group 888 Holdings hit the jackpot at 104½p, up 6¼p, following a positive fourth-quarter trading statement. It is on track to meet or exceed full-year profit expectations. Rival PartyGaming touched 190p and closed 2p dearer at 169¾p in sympathy.
Reflecting a return to profits in the first half, online gaming minnow Webis Holdings rose 1.3p to 2.875p.
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Paypoint, which offers a system for paying bills in the UK and in the Republic of Ireland, jumped 38p to 461p after saying that in the UK, bill and general payment volumes continue to run ahead of plan.
More than 36m Aricom, 2p up at 26p, were traded following share exchange bid terms from Peter Hambro Mining, 90p off at 495p, partly financed by a £55m placing at 450p a share. The Russian iron-ore miner was spun out of PHM in 2003.
Good interims helped Alumasc advance 7p to 70½p. The supplier of premium building and engineering product reported pretax profits of £3.5m, just a shade off last year's £3.6m. The dividend is unchanged at 3.25p. House broker KBC Peel Hunt upgraded to buy from hold and lifted its target price to 88p from 66p.
News that its Protection and Defence business has received a second award from the US Government for the delivery of a further 61,000 M50 mask systems over the next year left Avon Rubber 4p better at 42½p.
AIM-listed Enfis soared 15p to 45p after the producer of LED lighting switched on an exclusive contract with Gekko Technology to address Gekko's specific requirements for high quality television and firm lighting.
Avanti Screenmedia, the digital screen media specialist, firmed ½p to 1.625p. It has secured further funding through the issue of £250,000 of convertible loans.
OPG Power Ventures, the Indian developer and operator of power plants, buzzed ¼p higher to 33½p after signing contracts with national and private customers at an increased tariff for about 50% of the group's current installed capacity.
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