FTSE in-depth: Tomkins buzz thrills punters
Professional punters have had one particular stock on their minds for weeks. They have loaded up with shed-loads of Tomkins, confident that the automotive equipment engineer's days of independence are numbered.
Taking stock: Better-than-expected UK jobless numbers helped the Footsie.
Turnover in the stock swelled to 8.6m yesterday and the shares accelerated 6.7p to close at the day's best of 197.9p as speculation about a £2.2bn or 250p a share cash bid from Canadian-based auto parts group Magna International intensified.
Tomkins' chief executive Jim Nichol was the former president and chief operating officer of Magna before joining Tomkins in February 2002.
Magna, which is considered to be the most diversified global automotive supplier, has this year featured in bids for General Motor's Opel and Vauxhall car operations. It is rumoured to have now turned its attention to Tomkins, whose fortunes were dramatically revived by the US government's 'cash for clunkers' programme. That helped revitalise the US car market and analysts are expecting a significant rebound in earnings next year.
Colt Telecom buzzed 5.6p higher to 131.4p. Speculators piled in on hearing a little ditty that AT&T of the US had bid Fidelity £2 a share for all, or a big chunk, of its 54% stake in the company which provides data, voice and managed services to business and governments in Europe.
Better-than-expected UK jobless numbers helped the Footsie put on 34.49 points to 5,320.26 although fund managers generally kept their powder dry ahead of news from the latest Federal Open Market Committee meeting. Hopes were high that the Fed would hold its benchmark rate at a record low to sustain the global economic recovery. Wall Street advanced 45 points in the early stages.
The latest Bank of America/Merrill Lynch fund manager survey says that investors are looking forward to 2010 as a year of moderate economic growth, benign inflation and solid returns in global equities.Expectations for corporate profits are at their highest level since December 2003
International Power, 0.7p off at 300.8p, continued to attract hefty demand amid persisting rumours of a £6bn, or £4-plus a share cash offer from GDF Suez, the French group which is the world's second largest utility.
The story has been doing the rounds for weeks but the silence from both companies has been deafening. GDF Suez is said to have held prolonged talks with the French government, its largest shareholder with 35.6%, and has lined up a team of bankers to make a move on the international electricity generator before 2010.
Clive Cowdery's acquisitive insurer Resolution, which is strongly rumoured to have Legal & General (1.05p dearer at 80¼p) on its shopping list, rose 3.9p to 82½p.
Ahead of its relegation from the Footsie, royal rat catcher Rentokil added 4.8p at 102.73. Deutsche Bank advised clients to nibble, believing the stock looked oversold.
Lloyds Banking Group, 43%-owned by the UK taxpayer, edged up 0.23p to 55.55p. Cazenove reckons the bank could return to profitability next year.
Housebuilder Redrow rose 8½p to 129.52p and rival Barratt Developments added 6.6p to 115.31p after Citigroup said the sector appears for a significant rebound if a double dip recession does not materialise. Negative sentiment is overdone and the sector now looks good value on a 12-month basis.
Futura Medical, which develops innovative products for consumer healthcare, rose 4p to 32¼p. Buyers appeared on hearing that discussions with a major pharmaceuticals company for a licensing agreement for TPR100, its fastacting topical pain relief product, are now likely to be completed in the first-half of 2010.
News that FuturaGene has been granted a patent by the Chinese patent office for its drought tolerance gene, lifted the shares 4p to 70p. The Chinese patent is a significant step as it protects and enhances its business development in China.
BATM Advanced Communications improved 1¾p to 49¼p after winning a £3m order for the delivery of a high speed access platform to the military. KBC Peel Hunt is a fan of the group which has a strong balance sheet with £49m net cash.
Almost 22m shares in Range Resources changed hands and the close was ⅝p dearer at 3⅝p. Chief executive Pete Landau gave a bullish update on its projects in the Puntland state of Somalia, Texas and the Republic of Georgia.
• Soon to take the step up to AIM from PLUSmarkets, Oracle Coalfields edged up to 3⅞p. The UK developer of a 1.4bn tonne coal deposit in southern Pakistan has entered into a memorandum of understanding with the Karachi Electricity Supply Company, a major supplier of electricity in the Sindh Province, particularly Karachi. Oracle hopes to soon enter into a long-term coal supply agreement with KESC.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Inside the new Ferrari V12 Cilindri
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- How to invest for income and growth: SAINTS' James Dow
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Blue Whale fund manager on the best of the Magnificent 7
- Mini Cooper SE: The British icon gets an all-electric makeover
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- TONY HETHERINGTON: Boss behind firms fined £340k for over...
- British businesses awash with 'accidental' bosses who...
- Shipping broker Clarksons on list of shame after...
- Cost-of-living crunch wipes shine off Thomas Sabo jewellery
- MIDAS SHARE TIPS UPDATE: Wind is turning in Octopus...
- As world lurches from crisis to crisis, experts share...
- A good week - not before time, but let's not get carried...
- Hollywood silly money? I'd only have stuffed it under the...
- CITY WHISPERS: Bill Ackman's cerulean eyes charm...
- 86-year-old Peter's woes with a faulty smart meter that...
- Virgin Money's biggest independent investor...
- Britain's nascent battery industry receives shot in the...
- Helium and hydrogen company set to join stock market in...
- Where is Labour's 'white heat' revolution to revive...
- JOHCM UK EQUITY INCOME FUND: Rate cuts... and a spending...
- North Sea projects worth £21bn put at risk by Labour: Tax...
- MIDAS SHARE TIPS: Why it soon won't be hip to give the...
- Ikea pushes back opening of its Oxford Street store to...