FTSE in-depth: Autonomy could score with deal
Tottenham Hotspur sponsor Autonomy was the Footsie's takeover tale of the day, and not for the first time in recent months.
Foster: Sporadic bouts of profit-taking left the Footsie 9.03 points lower.
Shares of the software group raced ahead to touch 1481p before closing 68p higher at 1475p on revived gossip that two household technology names - Oracle and Microsoft - will early next year lock horns in a £6bn-plus, or £25-a-share, takeover battle for control of the Cambridge-based group which was founded by Britain's first software billionaire, Mike Lynch.
A damaging profits warning in October, which resulted in the stock plummeting £3 in one nervy session, certainly left Autonomy vulnerable to a bid. Fears that organic growth may be slowing had investors running for the exit.
Nerves were also frayed by growing concern that deal-hungry Lynch would bounce back and announce an expensive accretive acquisition before the end of the year.
Lynch had consistently flagged that he would announce an acquisition worth up to £630m in the short term. Sources now suggest that Lynch is still working overtime on a deal which could be announced before the fourth-quarter results are revealed in February.
Judging by the performance of Autonomy's share price, a bidder will pounce before Lynch gets the cheque book out.
Rexam rose 11.7p to 322.6p in response to speculation in the trade press that it is considering selling its consumer packaging business, Closures, which makes lids and tops for beverage, food and household containers.
Shrugging off director Roger Davis's sale of 50,000 shares at 783p a pop, global credit information group Experian jumped 21p to 812.5p. Sporadic bouts of profit-taking left the Footsie 9.03 points lower at 5,882.18.
Wall Street put a late brake on selling over here by rising 33 points following strong economic data showing that manufacturing and industrial activity was last month better than expected.
Royal Dutch Shell bid rumours continued to stimulate oil giant BP, which recovered strongly from 467p to touch 479p before closing 3.45p better at 476.55p on hefty turnover of 46m shares.
Credit Suisse First Boston this week lifted its target price from 515p to 585p. Following the controversy over the Gulf of Mexico oil spill, US investors are now underweight in the stock. The broker believes they will start buying again because new boss Bob Dudley's disposal programme is going well and achieving higher prices than market estimates.
Clean-up and litigation costs are lower than market expectations and the dividend will be reinstated early in 2011.
Morgan Stanley upgraded AstraZeneca to overweight on hopes that the US Food & Drug Administration will today give marketing approval to its potential blockbuster heart drug, Brilinta. The blood thinner, if approved, would be used for treating acute coronary syndrome, or heart conditions caused by the blockage of arteries flowing to the heart. Rival drugs giant GlaxoSmithKline added 11.5p at 1269p.
As ratings agency Moody's placed the Aa1 rating of Spain on review for a downgrade, sellers dragged Barclays 10p lower at 262p. The bank has a significant interest in Spain.
British Airways nosedived 5.6p or 2% to 272.4p with sentiment not helped by news that cabin crew will vote on whether to hold a fresh strike over issues including the removal of travel concessions from crew who took part in earlier stoppages.
The appearance of the legendary George Soros on UK airline Flybe's share register with a 3.4% stake via his Quantum Partners vehicle did little for the share price, which closed 2.75p easier at 337.25p but still way above the offer-for-sale price of 295p.
Bulls of North Sea oil explorer Xcite Energy were given another hefty kick in the solar plexus. The shares plummeted a further 28.75p or 11.3pc to 225.5p after the company said the horizontal section of well 9/3b-6Z on the Bentley field has yet to commence the test phase.
An operational issue with the export hose has occurred and an alternative testing procedure has been identified and is in the process of being implemented. Last week the board blamed bad weather in the North Sea for delays in drilling.
Richard Webster, new chief financial officer, acquired 5,000 shares in Pursuit Dynamics at 486p a throw. News of his purchase put a brake on selling of the jam tomorrow technology company. The shares rallied from a depressed level of 447.75p to finish 3p dearer at 493p.
Uranium Resources edged up 0.5p to 2.88p.
Buyers of the stock were alerted by Russia's AtomRedMetzoloto's all-cash offer for Mantra Resources, which owns 100% of the Mkuju River Uranium Project in Tanzania, which is adjacent to UR's flagship Mtonya uranium project.
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