FTSE sees tentative trading
Newly-created pharmacy giant Alliance Boots, formed by the merger of Boots and Alliance UniChem, debuted on a weakening London market today.
The company delivered an upbeat trading statement and said it expected to make £100m (€146m) of cost savings a year within four years, although shares in the firm slipped 1% or 8.5p to 798p by mid-morning.
The tentative start reflected trading across the wider London market as the FTSE 100 Index slipped 32.7 points lower to 5942.2.
The fall came after a strong run last week in which the Footsie gained more than 250 points to close at its highest level for two months.
Among today’s risers was Severn Trent after speculation over the weekend linked it with a £5bn (€7bn) private equity bid.
Shares jumped 6% in the first minutes of trading before settling to stand 3% higher – up 41p to 1314p – as investors began to question the likelihood of a bid.
But it was beaten to the top of the blue chip leaderboard by Tate & Lyle, up 24.5p to 691.5p, after news that Mexico and America had agreed a timetable to eliminate a 20% tax on soft drinks made with sweeteners. The move could open up a sizeable market for Tate which has previously been stifled by the tax.
Publisher Pearson gained 2% or 17.5p to 737p after its first half results beat expectations in the City. The company, which owns Penguin books and the Financial Times, turned pre-tax losses of £6m (€8.8m) in the first half of last year into profits of £31m (€45.3m).
And shares in HSBC picked up 4p to stand at 978p after the company posted an 18% hike in first-half profits of $12.52bn (€9.8bn).
Other banks were in retreat however, with Alliance & Leicester down 14p to 1049p and Barclays off 7p to 627p.
