FTSE soars after O2 takeover
An agreed offer for mobile phone giant O2 led a dramatic morning of takeover activity which sent the London market soaring today.
A £17.7bn (€26bn) offer for O2 from Telefonica had investors clamouring around the telecoms sector as shares in the stock lifted more than 24%, while shipping companies were boosted by £3 billion takeover interest in P&O.
Deals were also announced for retailers Allsports and Peacock, and Postman Pat owner Entertainment Rights, as the FTSE 100 Index moved up 67.2 points to 5280.6 by mid-morning while the FTSE 250 Index was 169.3 points ahead at 7670.1.
The most significant development of the morning surrounded O2 as its shares jumped 40.5p to 204.75p.
Other telecoms companies benefited from the consolidation with Vodafone ahead by 3.25p to 146.75p and Cable & Wireless up 2.75p to 113.5p. Smaller rival Virgin Mobile was 32p stronger at 321p as analysts eyed further bid targets.
P&O shares were full steam ahead in the FTSE 250 Index – up 107.25p or 35% to 417.5p – as it confirmed a tentative approach from an unnamed party.
The increase reflected expectations of a bidding war for the company and was followed by a 5% hike for fellow operator AB Ports, which stood 26.75p higher at 548.75p.
And shares in Pilkington were up more than 10% or 13p to 139.75p as speculation that Saint Gobain might be eyeing up a bid swept the market.
Rupert Bear boosted Entertainment Rights after the company announced it had agreed a £6m (€8.8bn) deal with Express Newspapers to take a two-thirds stake in the character. Shares were up 5% or 1.25p to 28p as Entertainment Rights outlined plans for Rupert including television stardom.
Elsewhere, Peacock was up 7.5p to 334.25p after management finalised the terms of a long-awaited buy-out while John David Group – owner of JD Sports – stood unchanged at 242.5p after announcing it had bought the collapsed retail chain Allsports.
