FTSE in-depth: Hays hots up on takeover talk
Recruitment firm Hays became the latest red-hot takeover favourite, rising 4.65p to 102.9p on talk of a £2.1bn, or 150p, a share cash offer from Swiss-based Adecco.
The world's largest recruitment group has retained its ambition for UK expansion after failing with a 400p a share offer for rival Michael Page (6.2p cheaper at 419.7p) in 2008, and Hays is now believed to be at the top of its shopping list.
White-collar recruiter Hays is deemed vulnerable after recently reporting underwhelming annual results, showing an 80% decline in pre-tax profits to £71m.
The figures were dented by a £30m fine imposed by the Office of Fair Trading for anti-competitive behaviour while recruiting construction workers.
Chief executive Alistair Cox is now confident the group has turned the corner and recently said that 'the outlook across 90% of our markets continues to improve, including the UK private sector'.
Should Adecco make a play for Hays, dealers heard that Randstad, the Dutch recruiter, could counterbid. Whatever happens, Evolution Securities' target price is 170p.
The Footsie rallied 21.92 points to 5,429.74, but the volume of business was again nothing to write home about. Wall Street added 71 points in early trading.
Shrugging off news that group president Tudor Brown had sold 231,600 shares at 370.81p, chip maker ARM advanced 21.4p to 387.7p. Broker RBS repeated its buy recommendation after Samsung selected its technology for its new mobile phone chip. Samsung had previously used chips provided by Imagination Technologies, which collapsed 42.1p to 341.1p on news of Samsung's snub.
Buying in belated response to a Liberum Capital recommendation lifted satellite communications services group Inmarsat 22.5p to 712.5p.
Miner Xstrata rose 32p to 1101.5p as rumours of a bid from 34% shareholder Glencore resurfaced.
Widespread criticism of Bob Diamond's appointment as new chief executive from March next year dragged Barclays 6p lower to 308.05p. HSBC lost 7.6p to 654.9p as the search began for a new chairman to take Stephen Green's place following his decision to become Minister of State for Trade and Investment.
Mobile phone giant Vodafone slipped 0.1p to 159.9p after confirmation of the sale of its 3.2% interest in China Mobile for £4.3bn in cash, almost double its original investment. The group plans to return around 70% of net proceeds to shareholders by way of a share buyback, with the rest used to reduce net debt which stood at £32.7bn at the end of June.
Antisoma added 0.64p at 6.22p after announcing Phase III trials of its acute leukaemia drug A51413 is now fully enrolled. Data from the trial is expected in the first-half of 2011.
Online betting group PartyGaming, which is climbing into bed with Bwin, soared 15.7p to 288.1p. Buyers got involved after the European Union ruled against a state monopoly of sports bets and lotteries in Germany.
Strong interims helped Lupus Capital put on 2p at 84p. The building materials firm saw sales rise 14% to £117m and pre-tax profits jumped 43% to £12.6m. The company focuses on the UK and US residential housing markets and expects to see mixed trading conditions in those markets in the second-half.
Wound-care specialist Advanced Medical Solutions, which rejected a bid approach from Consort Medical earlier this year, firmed a penny to 54.25p after announcing a maiden interim dividend. The company said it would be looking for licensing and buyout deals to expand its business in Europe.
Reflecting a sharply higher annual dividend and bullish comments about recovery prospects, Interior Services Group rose 14p to 154p. Symphony Environmental Technologies improved 1.75p to 13.75p on a broker recommendation.
Telit Communications, a leader in the machine-to-machine communications industry, edged up 0.5p to 56.5p after reporting better-than-expected interim results.
Industrial engineer Tanfield improved 0.46p to 14p after announcing plans to raise £2m by offering shares at a discount of 10p a share in order to complete the consolidation of its electric vehicle business.
Nighthawk Energy eased 0.5p to 23p despite an upbeat trading update. Westhouse Securities reiterated its bullish stance, saying that its production continues to grow and there is potential for significant growth in the short term.
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