Sector movers: Diageo eases on US authorities' request
Spirits group Diageo is easier after being asked yesterday to provide more information about its proposed purchase of a 50% stake in super premium vodka Ketel One by the US authorities.
In February, Diageo agreed to pay the Nolet family $900m for a 50% stake in a new company that will be the exclusive global distributor of Ketel One.
"Diageo will comply with the second request as expeditiously as possible and will continue to cooperate fully with the FTC's (Federal Trade Commission's) review," Diageo said in a statement.
The firm, which makes Smirnoff vodka, Johnnie Walker whisky and Guinness, did not indicate what extra information the FTC had requested.
Speciality metal and metal-based chemicals firm Metal-Tech rebounds today after being hammered yesterday on news that the expects to fall "significantly" short of full year profit expectations.
The company, which reports all revenue in dollars but incurs most costs in other currencies, blamed the weak greenback for an increase in both cost of sales and operating costs.
It added that costs related to the fight against what it considers to be an illegal attempt to take control of its unit in Uzbekistan had been "considerable".
A write-off of $8.3m has been taken to reflect a complete write-off of the Uzbek investment, while further costs of potential additional legal action to recover its investment in Uzbekistan has been reflected in forecasts for the current year.
There was also a production problem in Mongolia that meant it could not immediately sell Calcium Molybdenum, resulting in a build-up of inventory to $12m, which has now been written down.
Top performing sectors so far today
Industrial Metals 8,457.50 +4.10%
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Tobacco 23,672.90 +2.12%
Chemicals 5,355.50 +1.73%
General Financial 6,965.80 +1.52%
Electronic & Electrical Equipment 1,793.20 +1.43%
Bottom performing sectors so far today
Beverages 6,622.40 -0.59%
Health Care Equipment & Services 3,985.10 -0.54%
Food & Drug Retailers 4,539.50 -0.38%
Food Producers & Processors 4,467.10 -0.38%
Electricity 7,447.20 -0.34%
