Sector movers: Banks slump on shock Bear takeover
Banks are in shock after JP Morgan bought the beleaguered US investment bank Bear Stearns for a knock-down price.
JP Morgan Chase will pay just $2 a share, or $240m, for Bear Stearns, the smallest of Wall Street's big five banks, less than a tenth of its market value on Friday. The US central bank has protected JPM shareholders by effectively underwriting $30bn of Bear's sub-prime mortgage-backed bonds.
HBOS, Royal Bank of Scotland, Barclays and Alliance & Leicester are currently the four main fallers of the day.
British Energy gave the electricity sector a boost after it admitted that it is in talks with interested parties that could lead to a business combination or an offer for the nuclear operator
"The board announces that the company is in discussions with interested parties in the context of its future and its plans to take a pivotal role in any new nuclear programme," said the group in a brief statement.
Meanwhile, renewable energy firm Novera Energy admitted that it has been approached by Infinis Acquisitions, a company backed by Terra Firma, as it continues negotiations with 3I Infrastructure.
Top performing sectors so far today
Electricity 7,409.40 +1.48%
Pharmaceuticals & Biotechnology 6,427.30 +1.07%
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Aeronautics and Defence NULL 0.00%
Alternative Investment Instruments NULL 0.00%
Automotive and Parts NULL 0.00%
Bottom performing sectors so far today
Banks 7,071.90 -5.65%
Automobiles & Parts 4,134.40 -4.21%
Forestry & Paper 4,063.50 -4.13%
General Financial 6,445.60 -3.91%
Life Insurance 4,501.50 -3.81%
