The London Report: Kingfisher climbs on activist talk
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Kingfisher outperformed a flat FTSE 100 after Morgan Stanley said the B&Q owner might be targeted by activist investors.
If Kingfisher’s cost-cutting plan works, it will provide a material boost to consensus forecasts and, if it fails, shareholders will start looking at the case for a break-up, said the broker. Its sum-of-the-parts valuation on Kingfisher suggested 50 per cent upside.
Shire was the FTSE 100’s biggest riser after Takeda agreed to buy the drugmaker while Virgin Money led the FTSE 250 gainers after CYBG, the Clydesdale Bank owner, confirmed recent speculation by launching an all-share takeover offer. Peer OneSavings rose on hopes of further sector consolidation.
FirstGroup dropped after Apollo Global Management abandoned plans to buy the transport group.
Weir climbed after Barclays made the pumpmaker its top pick among UK capital goods makers. A trip to Houston suggested a pick-up in demand for pressure pumps as the cycle moves from reactivating old equipment to replacing, Barclays said.
Just Group , the retirement products specialist, slipped after Deutsche Bank started coverage with a “hold” recommendation.
Comments