London open: Healthy early gains

22nd Mar 2011 08:55

A bit of momentum is building behind Footsie now, with fund managers and life groups going well.Schroders and Prudential are two of the best performers after the Dow rose again overnight to climb back through the 12,000 mark. Cairn Energy has yet to reach an agreement with the Indian authorities over the proposed sale of its Rajasthan assets to Vedanta. Hopes had been raised that Cairn would announce a deal had been struck with today's results, but the group just repeated that the sale of its 51% stake in Cairn India is awaiting approval. Cairn posted a net profit of $1.08bn in 2010, up from $53m. Punch Taverns, the biggest pubs group in Britain, is to split itself in two by the end of the summer and sell thousands of boozers. The review, which started in October, has concluded that the way forward is to separate the Spirit managed pubs business from the struggling leased operation - Punch. This will create two independent public companies and allow the investment and development needed to speed up its operational turnaround and drive growth. Ports operator Forth Ports has agreed a bid worth 1,630p a share from major shareholder, the Arcus European Infrastructure Fund. Shareholders will also get to keep the proposed final dividend of 20p a share expected to be paid on 13 May. "The Arcus offer gives Forth Ports shareholders the opportunity to realise their investment for cash at a fair price," chairman David Richardson said.Treatt, which makes ingredients for the flavour, fragrance and cosmetic industries, said results for the full year are expected to be materially higher than previously anticipated after strong trading at its US division. Trading during the half year 'significantly exceeded expectations' while order books have remained strong, the group.