London open: Bid chatter lifts Footsie

21st Feb 2011 08:44

London has recovered its early losses with a smattering of bid talk and some decent trading updates encouraging a few buyers. The US market will be closed for Presidents' DayInvensys is the top performer after weekend reports it is being stalked by international rivals considering a bid for the company. City sources say predators include Honeywell and Emerson Electric of the US, ABB of Switzerland, Alstom of France, Germany's Siemens and two Chinese firms, CSR and CNR.Lonmin has also picked up on a story that Xstrata chief executive Mick Davis is still keen on acquiring the platinum miner. South African paper and packaging firm Mondi increased full year pre-tax four fold and upped its dividend as demand continues to pickup from financial crisis levels. Pre-tax profit rose to €372m for the year ended 31 December 2010 from €49m a year earlier. Group revenue increased 18% to €6.2bn. Royal Dutch Shell has agreed to sell most of its stake in nearly all its retail and distribution businesses in Africa to a private equity fund for around $1bn (£616m).Sector peer Hammerson reported adjusted profit before tax of £144.5m for 2010, up from £130.0m in 2009. Profit adjusted for revaluations grew by 11% to £144.5m and adjusted net asset value per share had risen 17.6% to 495p by the end of 2010. Net rental income fell 3% to £284.7m, but was up 3.5% on a like for like basis. "This is a strong set of results which reinforces the strategy we are pursuing," chairman John Nelson said.Spirits brands giant Diageo is to buy Mey Içki, the leading spirits producer and distributor in Turkey. The company is being acquired for an enterprise value of TL3,300m (£1,300m) from investment firm TPG Capital and Actera. The transaction is expected to complete in the second half of 2011, subject to regulatory clearances. Sausage skins maker Devro produced full-fat results for 2010 with operating margin improving sharply to 16.1% from 12.4%. Profit before tax and exceptional items in 2010 rose 44.4% to £36.3m from £25.1m in 2009. Bluetooth chip specialist CSR has slumped after it unveiled a $680m merger with US peer Zoran accompanied by a $240m share buyback programme.Property firm Great Portland Estates has swapped its freehold interest in 79/89 Oxford Street with a private investor in return for a new 250 year leasehold interest at both 79/89 Oxford Street and the adjoining property, 73/77 Oxford Street.Soy sauce manufacturer China Food Company says that its full year figures will be moderately ahead of estimates, which has led its broker FinnCap to upgrade its 2010 profit estimate by £200,000.