Sector movers: Abbot succumbs to bid
Takeover talks at oil services contractor Abbot Group came to fruition today as Turbo Alpha, a company formed by a fund advised by First Reserve, made an agreed offer for the company.
Under the terms of the offer Abbot shareholders will receive 390p cash per Abbot share. The offer values Abbot at about £906m. Abbot shares closed at 334p last night.
Alasdair Locke, the chairman and largest shareholder of Abbot with a 13% stake, has agreed to subscribe for £25m of ordinary shares in Turbo Cayman, the ultimate parent company of Turbo Alpha, once the takeover is complete.
"We have a long history of assisting oilfield service companies achieve their international growth plans and with the support of First Reserve's global energy network, look forward to working with Abbot's management and employees in continuing to invest the necessary time and cash resources in its business and facilities through a focused expansion programme both in the UK and internationally," said First Reserve's managing director, William Honeybourne.
Mining stocks are out of favour this morning, with Anglo American suffering the additional handicap of a downgrade by HSBC. The bank has cut its price target for Anglo American from 3500p to 3400p.
Top performing sectors so far today
Oil Equipment Services & Distribution 15,055.20 +1.89%
Personal Goods 9,178.30 +1.57%
Support Services 3,799.10 +1.52%
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Technology Hardware & Equipment 267.90 +1.13%
Industrial Metals 7,016.60 +1.10%
Bottom performing sectors so far today
Industrial Engineering 2,962.80 -2.15%
Automobiles & Parts 4,355.40 -2.13%
Mining 22,403.30 -1.23%
Food & Drug Retailers 5,309.70 -0.88%
Gas, Water & Multiutilities 5,051.70 -0.83%
