(Sharecast News) - London's FTSE 100 was 0.3% higher at 10,503.66 in afternoon trade on Friday.
Vodafone was the standout gainer on the index on news that Emirates Telecommunications Group will sell its entire stake in the company to French billionaire Xavier Niel for £4.4bn. Under the terms of the deal, E&'s 16.21% stake has been priced at 112.5p per share, a premium to Thursday's closing price of 97.76p.
Vodafone confirmed that the relationship with E& had been terminated, and that its nominee director, Hatem Dowidar, had resigned from the board with immediate effect.
Dan Coatsworth, head of markets at AJ Bell, said: "French billionaire Xavier Niel has become Vodafone's largest shareholder after buying a 16.2% stake from UAE telecoms group e&.
"Niel had already been an investor in Vodafone since 2022, and his new investment is subject to regulatory clearance. If approved, the investment would represent yet another twist in the ever-changing ownership structure of UK telecoms groups.
"Another French billionaire, Patrick Drahi, built up a 24.5% stake in BT but sold the entire stake to Bharti Enterprises in 2024 to help pay down his debt.
"Two years ago, the UK government said e&'s investment in Vodafone posed a national security risk to the country. The investment wasn't blocked, but national security safeguards were imposed.
"It's possible the UK government will have similar concerns with Niel's latest purchase, given it also investigated Drahi's investment in BT on national security grounds. After all, both Vodafone and BT are providers of essential services to businesses and consumers across the country.
"The market has responded favourably to Niel's latest move, with certain investors possibly believing he might want to buy the whole of Vodafone in time. That might not be the case, but it won't stop market speculation."
Shares in St James's Place tumbled following a report that one of its largest partner firms, Sovereign Wealth, is the latest set to leave as the wealth manager faces retention challenges.
According to Financial News, Sovereign Wealth is in talks about joining Swedish wealth management group Söderberg & Partners.
According to its website, Sovereign Wealth has around £3bn of funds under management and a network of more than 50 advisers around the UK.
FTSE 100 - Risers
Vodafone Group (VOD) 109.75p 12.21%
Entain (ENT) 548.00p 3.79%
Flutter Entertainment (DI) (FLTR) 8,350.00p 2.33%
Pershing Square Holdings Ltd NPV (PSH) 3,892.00p 1.99%
Relx plc (REL) 2,417.00p 1.77%
Land Securities Group (LAND) 669.00p 1.67%
BT Group (BT.A) 189.90p 1.58%
Prudential (PRU) 1,044.00p 1.56%
JD Sports Fashion (JD.) 82.70p 1.55%
Spirax Group (SPX) 6,470.00p 1.41%
FTSE 100 - Fallers
St James's Place (STJ) 1,185.50p -6.49%
Babcock International Group (BAB) 1,007.50p -1.80%
AstraZeneca (AZN) 13,088.00p -1.60%
Rolls-Royce Holdings (RR.) 1,417.60p -1.43%
Glencore (GLEN) 502.90p -1.41%
Imperial Brands (IMB) 2,712.00p -1.13%
Hiscox Limited (DI) (HSX) 1,879.00p -0.95%
IG Group Holdings (IGG) 1,797.00p -0.83%
Centrica (CNA) 170.80p -0.58%
Persimmon (PSN) 1,030.50p -0.58%