Possible Rentokil takeover sends shares soaring
Rentokil Initial led the FTSE 100 Index to a positive finish today after news of a possible takeover offer sent its shares surging.
The pest control group added 10% to its market value after former Granada boss Sir Gerry Robinson confirmed his interest in a takeover offer for the company.
This helped the FTSE 100 Index close above the 5300 barrier – 5.8 points ahead at 5318.4.
Rentokil was the highest Footsie riser, up 15.25p to 166.5p, as the firm added it would evaluate any offer up against its own recovery plans.
Takeover news also drove activity further down the market scale, with shares in brewer Belhaven jumping almost 16% or 84.5p to 625.25p after recommending a takeover offer from Greene King valuing it at £187 million.
The news sent shares in Greene King 10p lower to 1302p as it revealed plans to fund the deal through new stock and said the forthcoming smoking ban in Scotland may disrupt the Belhaven business in the short-term.
Back in the top flight, miners queued up behind Rentokil on the risers board as BHP Billiton benefited from a broker upgrade.
BHP was the second biggest climber, up 25.5p to 844.5p, followed by Antofagasta, up 43p to 1469p, and Rio Tinto, cheering 58p to 2049p.
Telecoms companies also pushed ahead after an upgrade for mobile phone giant Vodafone. The market heavyweight lifted 0.25 to 155p, while BT Group added 2p to 222.25p and Cable & Wireless cheered 2p to 156.25p.
In contrast, spirits were lower in the oil sector despite the cost of a barrel of crude oil rising further above 65 US dollars a barrel in New York.
Heavyweight stock BP weakened 3.5p to 629.5p while rival Royal Dutch Shell weakened 7p to 1859p.
FT owner Pearson was also in the red, down 7p to 687.5p, after broker Credit Suisse downgraded the stock.
And hotels group Hilton was behind it at the top of the Footsie fallers board, losing 3p to 300p as investors awaited interim results due this week.
Elsewhere, ground engineering specialist Keller fared well as one of the few companies to report results today. With half-year profits up 39% and a record order book, shares lifted 28p to 360.5p.
Takeover target Somerfield managed to rise slightly after it was reported that some shareholders want it to walk away from a bid rather than accept a cut-price offer.
Shares in the company, which is in talks with two parties, rose half a penny to 199.5p.
But ringtones specialist MonsterMob failed to cheer investors with news of a deal for a Chinese counterpart.
The stock was unchanged at 434.5p after MonsterMob told investors the deal for ATOP Century was worth around 100 million US dollars (£55.5m).
The highest Footsie risers today were Rentokil Initial up 15.25p to 166.5p, BHP Billiton rising 25.5p to 844.5p, Antofagasta up 43p to 1469p and Rio Tinto rising 58p to 2049p.
The heaviest fallers were Pearson down 7p to 687.5p, Hilton Group off 3p to 300p, BSkyB down 5.5p to 568.5p and Shire Pharmaceuticals off 6p to 675.5p.
