Yesterday's Trading: Bid talk pumps up oil explorer
Dana Petroleum gushed as rumours abounded that the Scottish explorer could be the next bid target following a frenzy of deals in the mid-cap oil and gas sector.
Trading news: Round up of yesterday's action on the stock exchange
Shares rose 18% to 1470p at one point, amid talk of an 1800p-a-share deal that would value Dana at an extraordinary £1.6bn. They ended the day 78p higher at 1322p after it emerged there were no bid talks.
Dana, which has operations in the North Sea and Egypt, has made it clear it is not up for sale. But dealers did not want to be caught short of the stock, just in case it was sucked into the whirlwind of merger and acquisition activity.
Predators are making the most of relatively low prices before shares follow the lead of oil prices and march higher.
Heritage Oil (down 20½p to 514½p) is getting into bed with Turkey's Genel Energy, while Dubai's Emirates National Oil is considering buying the rest of Dragon Oil (¼p lower at 355¾p). Swiss explorer Addax Petroleum (up 41p to 2335p) has two suitors battling for its affections and British Gas owner Centrica (3¾p to 226p) has been given until July 13 to make clear whether it wants to bid for Aberdeen-based Venture Production (5½p firmer to 768½p).
Among the tiddlers in the sector Cadogan Petroleum fell 2¼p to 8p after it said it may have to restate its figures for the past three years while revealing its finance director had resigned.
It's been a disastrous ride for investors in the Ukraine-focused oil and gas firm since it listed with a market cap of more than half a billion pounds a year ago. The business was worth a mere £19m by the close of trade yesterday.
Just a month after its arrival on the stock market, it emerged there had been a legal challenge over two of its licences in the Ukraine. While this legal battle has dragged on, the company has continued to come up with disappointing test results from wells in eastern Ukraine.
The catalogue of woe continued last month with the revelation of potential procurement and payment irregularities.
Yesterday it admitted that because certain payments had probably been classified incorrectly in its financial statements it may have to restate its accounts. Further investigations are taking place.
Moving across to Russia and Gazprom Neft tightened its control on Sibir Energy by installing its legal specialist Igor Tsibelman in the job of chief executive. Shares in Sibir were suspended in February when a probe into the dealing of its major shareholder Chalva Tchigirinski was opened.
The FTSE 100 reversed an early fall after some encouraging economic data sent Wall Street marching higher at the open. The London benchmark closed up 2.4 points to 4,280.86, after hitting a high of 4305.43. By mid-session the Dow Jones Industrial Average was 67.72 points firmer at 8564.9.
Cruise operator Carnival sailed to the top of the FTSE 100 risers board, up 105p to 1571p, after it accompanied better-than-expected profits with news that booking volumes for the second half of 2009 were up 26pc. Its net income still fell in the second quarter to £161m from £238m last time.
Mining group Xstrata carved out gains of 11p to close at 654½p after two brokers issued bullish notes on it shares. Morgan Stanley more than doubled its price target to 855p from 385p while Citigroup raised its rating to buy and predicted the company to outperform its peers into the recover with concerns over its balance sheet easing.
Like some of Anglo American shareholders, Citigroup's analyst Liam Fitzpatrick thinks a tie-up between Xstrata and Anglo (up 7p to 1581p) would make sense. But Fitzpatrick decided that Anglo's reluctance to do a deal and the difference in the two companies' cultures meant a deal was just a 'possibility' rather than a 'probability'.
Rival mining giant Rio Tinto led the FTSE 100 fallers, down 105p to 2049p, as it continued its share sale to raise funds to cut its debt mountain.
Retailers were also under pressure, depressed by news that shoppers had tightened their purse strings in May. Electrical retailers DSG International and Kesa Electricals were casualties as brokers turned negative ahead of results next week.
DSG (down 1½p to 22½p), the owner of Currys, is expect to report a 79% drop in profits while Kesa (off 6½p to 107¾p), which operates Comet, is thought to have suffered a 46% profit fall.
Most watched Money videos
- How to invest for income and growth: SAINTS' James Dow
- Mini Cooper SE: The British icon gets an all-electric makeover
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Land Rover unveil newest all-electric Range Rover SUV
- '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
- Mini celebrates the release of brand new all-electric car Mini Aceman
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- AJ Bell launches 'ready-made pension' to help savers find...
- How refreshing that Anglo has chosen not to grab the...
- ANOTHER UK tech star is bought by US private equity: KKR...
- Savers rush to open new savings accounts paying up to...
- Why 16 to 24-year-olds are putting their parents to shame...
- De Beers eyes £4bn London float as Anglo bids to fend off...
- HMRC phone customers spent 798 YEARS on hold in single...
- Greggs sales soar as baker's expansion plans roll on with...
- Marston's losses narrow amid hopes of summer sporting...
- MARKET REPORT: Vodafone shares rally as investors cheer...
- Hundreds of jobs at risk as Anglo slashes funding for...
- Royal Mail's future hanging in the balance as bid...
- Axe stamp duty on British shares, says Flutter boss as...
- Tesco boss pockets £10m in biggest ever pay deal at a UK...
- BUSINESS LIVE: Burberry hit by luxury slowdown; Imperial...
- Santander offers £175 to switch your current account -...
- Investors ramp up bets against BT as new boss prepares to...
- I don't want smart meters, so Eon is charging me £316 to...