LSE dumped as bid hopes fade
LONDON Stock Exchange retreated 4 per cent yesterday as hopes faded that US rival Nasdaq would launch a takeover bid.
LSE shares, which have been on the rise as traders suggested its recent failed bid to merge with Canada’s TMX had left it vulnerable to Nasdaq and possibly a Far East suitor, fell 43p to 1002p as Nasdaq boss Robert Greifeld played down prospects for a major acquisition.
Greifeld said: “With our valuation today, those type of external opportunities are that much more difficult to show incremental value above and beyond some capital return to shareholders, or investments in internal growth opportunities.”
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Electronics group Laird fell 13¾p to 177½p as it made some data available to its American suitor Cooper Industries, which has raised its offer from 185p-a-share to 200p-a-share.
LSE shares fell 43p to 1002p
Another recently touted bid target, chemicals group Yule Catto, gave up 8p to 216½p as investors became more risk averse amid sovereign debt concerns on both sides of the Atlantic. Banks bore the brunt of a sell-off of top flight companies which left the FTSE 100 Index 73.15 points adrift at 5856.58. Dealers cited Goldman Sachs cutting its positive sector stance to neutral and bearish comments from Morgan Stanley.
Lloyds Banking Group and Royal Bank of Scotland were overdrawn 2p to 43¼p and 1¼p to 35p, while Barclays lost 7¾p to 221p. Software giants Autonomy, up 64p to 1720p, and Sage Group, 4¼p higher at 281½p, claimed the top two places on a depleted blue chip gainers board after positive updates.
The switch by investors into more defensive sectors boosted water companies United Utilities and Severn Trent, up 1½p to 601p and 1p to 1464p.
Higher gold and silver prices lifted Randgold Resources 35p to 5635p and Fresnillo 8p to 1700p, while platinum producer Lonmin climbed 17p to 1322p as Credit Suisse upped its rating to neutral from underperform.
Gas and electricity provider Scottish & Southern Energy and banking group Investec reversed 74p to 1327p and 15¾p to 492¾p as their shares traded without the right to the latest dividend.
Ladbrokes and William Hill, were up 1p to 147p and 1¾p to 231¾p, in anticipation of strong half-year figures due next week, but media buyer Aegis Group fell 4p to 159½p as it sold its Synovate market research business to French group Ipsos for £525million. Holidaybreak rose 15½p to 427p after the travel group agreed to be taken over by Indian rival Cox & King’s in a £312million deal. Telecom equipment testing firm Spirent Communications reverse charged 8¼p to 126¾p as dealers cited a disappointing update from US peer Tellabs.
lOn Wall Street, the Dow Jones closed down 198.75 points at 12302.75.
