London close: Late rally on Shell talk
London shrugged off a flat start on Wall Street with a late spurt sparked by talk that Shell and BP might be considering merging again.
Traders played down the talk suggesting Shell was up on plans to restart disrupted production in Nigeria and it was unlikely new BP chief Tony Hayward would contemplate such a move this early into his tenure of office.
Credit-checking firm Experian was another strong performers on news that US peer Acxiom has agreed to be taken over by Silver Lake and ValueAct Capital for $3bn.
Old Mutual was among the best FTSE 100 risers this afternoon as Deutsche Bank upped its view on the South African insurer to 'buy' from 'hold' with its target raised to 200p from 190p.
British Airways rose sharply on speculation that it will be the target of private equity investors and ahead of figures tomorrow.
Prudential powered ahead on rumours that it may be broken up even though chief executive Mark Tucker dismissed calls to break up the business at its AGM. Ratings agency Moody's put a negative outlook on the Pru's UK arm.
InterContinental Hotels was this afternoons biggest FTSE 100 faller despite soaring yesterday as its largest shareholder Ellerman, controlled by the Barclay brothers, increased its stake from 8.19% to 9.16%.
Telecoms giant BT reported fourth quarter results largely in line with expectations. It also announced details of a £2.5bn share buyback. Underlying earnings for the three months to 31 March were up 3% to £1.54bn on revenue 3% higher at £5.29bn., but traders were unimpressed.
Power supplier National Grid posted a 9% hike in pre-tax profit Thursday and said it expects to invest more than £14bn in electricity and gas infrastructure in the six years to March 2012.
TV broadcaster ITV said total TV advertising is less volatile than last year but warned that revenue from its premium rate telephone services will be lower. In the first quarter of 2007, total UK television advertising revenue had stabilised. Advertising revenue at ITV1 fell by 9.6% over the first half of 2007, whilst ITV total advertising revenue fell 5.7%.
Brewing giant SABMiller served up a 14% rise in annual pre-tax profit but cautioned that difficult trading conditions persisted in the US. Pre-tax profit rose to $2.8bn for the year ended 31 March 2007 while sale for the period increased 20% to $18.6bn. Sales in Europe and Latin America were particularly strong.
Away from Footsie, take over target EMI has allowed potential suitors access to its books indicating a deal may not be far away.Warner Music is one of the firms still interested.
Home shopping and educational supplies businesses Findel soared after a record year. Sales for the current six-week period are ahead of comparatives, it added.
Gambling group William Hill said trading comparatives are more challenging but it remains comfortable with consensus estimates for the full year out-turn. Group gross win for the period increased by 5.8% on the corresponding period last year.
Magazine publisher Emap also rose strongly as it announced chief executive Tom Moloney is stepping down. Chairman Alun Cathcart will fulfil the chief executive role until a permanent appointment is made, Emap said in a statement.
Fund manager Foreign & Colonial had more bad news for shareholders. Major shareholder Eureko is selling up to 44m shares, representing a 9.1% stake in the group. After F&C's poor recent performance, that is a big chunk of shares to find a home.
FTSE 100 - Risers
Experian (EXPN) 598.50p +3.91%
Royal Dutch Shell 'B' (RDSB) 1,859.00p +3.68%
Old Mutual (OML) 180.30p +2.50%
BP (BP.) 570.50p +2.42%
British Airways (BAY) 501.50p +2.35%
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BG Group (BG.) 770.00p +2.19%
FTSE 100 - Fallers
BT Group (BT.A) 306.25p -2.85%
Xstrata (XTA) 2,675.00p -2.55%
InterContinental Hotels Group (IHG) 1,340.00p -2.33%
BHP Billiton plc (BLT) 1,180.00p -2.24%
Rio Tinto (RIO) 3,500.00p -1.96%
Anglo American (AAL) 2,815.00p -1.95%
FTSE 250 - Risers
Findel (FDL) 749.50p +13.22%
EMAP (EMA) 881.00p +5.19%
Wimpey (WMPY) 627.00p +4.85%
John Wood Group (WG.) 289.50p +4.51%
Victrex (VCT) 798.00p +3.97%
Ashmore Group (ASHM) 313.75p +3.72%
FTSE 250 - Fallers
F&C Asset Management (FCAM) 183.00p -5.18%
Hochschild Mining PLC Ord 50p (WI) (HOC) 312.00p -3.41%
FKI (FKI) 125.75p -2.71%
Capital and Regional (CAL) 1,440.00p -2.31%
Serco (SRP) 488.00p -2.16%
Beazley Group (BEZ) 151.25p -2.10%
