FTSE 100 movers: Negative reaction to Man deal

17th May 2010 14:42

Footsie is having a positive day but hedge fund group Man is the main focus. The $1.6bn purchase of GLG Partners has knocked the Man share price making it the biggest faller on the index. The purchase price is equivalent to 6.75% of funds under management. This is thought by many to be a high price. The combined group will have $63bn of funds under management. There could be annual cost savings of $50m. One benefit is that Man will be less dependent on its main fund. Panmure Gordon has reduced its earnings forecasts for tour operators Thomas Cook and TUI Travel. The move follows the companies' recent interim figures. Forecasts have been reduced by around 3% for both companies. This reflects the refinancings of the two companies which will lead to higher interest charges. The rising gold price is boosting mining companies, including Randgold Resources and Anglo American. FTSE 100 - RisersStandard Chartered (STAN) 1,705.50p +5.15%Lonmin (LMI) 1,761.00p +4.02%Randgold Resources (RRS) 6,220.00p +3.49%London Stock Exchange Group (LSE) 656.00p +3.14%Anglo American (AAL) 2,677.50p +2.84%Eurasian Natural Resources (ENRC) 1,084.00p +2.55%ARM Holdings (ARM) 247.50p +2.48%Cairn Energy (CNE) 399.30p +2.41%BP (BP.) 542.80p +2.38%Xstrata (XTA) 1,033.50p +2.38%FTSE 100 - FallersMan Group (EMG) 203.40p -8.17%Aviva (AV.) 318.10p -2.69%BT Group (BT.A) 128.20p -1.61%G4S (GFS) 268.10p -1.58%Thomas Cook Group (TCG) 221.60p -1.55%TUI Travel (TT.) 251.80p -1.45%British Airways (BAY) 200.40p -1.23%Invensys (ISYS) 307.60p -1.03%Intertek Group (ITRK) 1,436.00p -1.03%Schroders NV (SDRC) 1,085.00p -1.00%