London pre-open: Drop likely as US gains slashed

2nd Jul 2009 07:42

Wall Street's steady decline from morning highs on Wednesday is likely to leave London lower in early trade.Futures prices are currently indicating an initial deficit of about 25 points.Rio Tinto shareholders have taken up 96.97% of the shares offered to them as part of the miner's $15.2bn fully underwritten rights issue. The group said on Thursday it received valid acceptances in respect of 508.6m new shares at £14 each. Brewing and pub group Greene King has reported profits that beat forecasts it made at the time of its rights issue in April that raised over £200m for the group. Profit before tax and exceptional items for the 52 weeks ended 3 May fell 15% from the previous year to £118.5m, but that was ahead of the £115m predicted. Revenue was up 1.3% to £954.6m, while retail like for like sales improved by 1.7%.Specialist computer and video games retailer Game Group reported a 15.4% drop in like for like sales in the 21 weeks to 27 June, but said it remains confident in the outlook for the full year. Total group sales were down by 9.1% in the first 21 weeks period. It expects to deliver first half profits before tax and non-recurring costs in line with plan at £13m-16m.Oilfield support services firm Petrofac has landed a gas compression project worth over $350m. Petroleum Development Oman (PDO) has awarded Petrofac a contract for the Kauther gas-field depletion-compression project. Petrofac will perform the procurement, engineering and construction of the gas compression system, as well as associated facilities at the Kauther gas plant. Petrofac will also undertake the commissioning of the plant and manage the first six months of operations.Pizza delivery outfit Domino's Pizza has purchased an equipment leasing business from Dresdner Kleinwort Leasing. Domino's is acquiring the entire issued share capital of Dresdner Kleinwort Leasing March (2) for an initial consideration of £26,007, with a deferred consideration of up to £15m due depending on certain conditions.