Drinks industry jostling keeps FTSE solid
Drinks group Allied Domecq topped the list of blue-chip risers in London today after talk of possible bid interest sent its shares up by almost 3%.
Allied’s gain of 14.5p to 536p came on the back of reports that French group Pernod Ricard had spoken to the US owner of Jim Beam bourbon about a joint bid.
Expectations that rival Diageo might try to cherry pick Allied’s wine portfolio pushed its shares up 4p to 742.5p, helping the FTSE 100 Index to stick close to its opening mark at 5043.7 at mid-morning, a fall of just 0.5 points.
Takeover activity was brisk outside the FTSE 100 Index, with online auctioneer QXL Ricardo jumping 24% or 200p to 1045p after a consortium featuring senior management formally raised their offer for the company.
TalkSPORT owner The Wireless Group moved 3% higher or 2.5p to 92.5p on confirmation that it was studying a takeover proposal involving chief executive Kelvin MacKenzie and other senior bosses.
Elsewhere, British Energy shares were under pressure following the nuclear generator’s first set of quarterly results since its restructuring.
Shares fell 3p to 252p.
