Media stocks drive up FTSE
Media stocks were driving London shares higher today following a host of broker upgrades and a major acquisition by advertising giant WPP.
Reuters, Emap and WPP occupied three of the top four spots on the risers board as the FTSE 100 Index moved 14.7 points higher to 4559.7 by mid-morning.
WPP cheered 16p to 530p after agreeing terms to buy US-based agency Grey Global, worth $1.31bn (€1bn).
Analysts said the price was at the top end of expectations, but benefits included new clients such as Procter & Gamble and greater access to the faster-growing markets of Asia and Latin America.
Shares in Emap improved 24.5p to 799p after broker UBS lifted its target price, while ITV benefited from the more positive stance of analysts at Smith Barney to rise 3p to 106p.
The warm glow around the sector helped Reuters to become the day’s biggest riser so far, ahead 4% or 12.5p to 348p.
Pharmaceuticals companies were in focus as AstraZeneca suffered in the wake of last week’s vote by the advisory committee of the US Food and Drug Administration against approval of one of its key drugs.
The stock lost more than 6% of its value – off 152p to 2298p – after the panel cited concerns that Exanta could cause liver failure in patients over the long term.
In contrast, rivals Shire Pharmaceuticals and GlaxoSmithKline made progress, up a penny and 16p to 511.5p and 113p respectively.
BAE Systems also made headway after acquiring a leading IT supplier to the Pentagon. The aerospace and defence group saw its stock add 2p to 217.5p after agreeing a $600m (£334m/€489.6m) deal for DigitalNet Holdings.
But profit-takers moved in on Sainsbury’s after last week’s strong gains on the back of speculation of an imminent takeover bid. The supermarket chain stood 2.5p lower at 280.5p.
