Sector movers: Ready to Rock
The next development in the Northern Rock saga is due today as it is the closing date for bidders to submit their takeover plans. All three bidders have been told that they will have to accept a "performance warrant" to allow the government to share in any financial recovery of the stricken mortgage bank, according to the Sunday Times.
Observers will be especially keen to see whether Virgin Group will succumb to pressure from Northern Rock's two largest shareholders, the hedge funds RAB Capital and SRM, who have both made it clear that they will vote against Virgin's bid if it does not propose a better deal for the bank's investors.
IT outsource specialist Xploite retreats this morning, despite reporting an adjusted operating profit of £1.2m in the 12 months to end-October, compared with a loss of £4.3m in the preceding year.
The company said it has made an encouraging start to the new financial year, but what is really driving the share price at the moment is the bid interest, and there are no new developments on that; the company said that discussions are still taking place but gave no further information.
Top performing sectors so far today
Automobiles & Parts 4,592.10 +1.84%
Industrial Metals 6,795.70 +1.78%
Industrial Engineering 2,981.00 +1.64%
(Article continues below)Advertisement
Banks 8,282.40 +1.43%
Software & Computer Services 471.00 +1.29%
Bottom performing sectors so far today
Health Care Equipment & Services 3,922.80 -1.56%
Mobile Telecommunications 4,065.40 -1.12%
Food Producers & Processors 4,461.70 -0.80%
Chemicals 5,040.70 -0.75%
Food & Drug Retailers 4,861.70 -0.70%
