London pre-open: Footsie points lower

18th May 2009 07:36

London's blue chips are expected to drop in early dealings with traders predicting Footsie to start around 40 points lower. Sir Victor Blank announced that he is planning to step down as chairman of Lloyds Banking by the AGM in 2010 following continuing criticism of his bank's ill-fated purchase of rival HBOS.In a separate statement, the bank confirmed that that it has agreed with HM Treasury to launch the previously announced placing and open offer on 20 May. The proceeds will be used to redeem the £4bn of preference shares held by HMT.Self storage group Big Yellow has announced a placing of 11.6m shares to raise funds for medium term growth alongside a £71.5m full year loss. The fundraising, at an as yet undecided price, could raise about £31m at Friday's closing price of 270p a share, or about £29m at 250p. Great Portland Estates has confirmed it is considering a range of funding options to embark on a buying spree in the central London property market. Weekend reports suggested it is planning a cash call of between £120m-£150m to buy distressed property bargains at knock down prices. Great Portland is said to favour a right issue to be underwritten by advisers JP Morgan Cazenove and Credit Suisse. It could be announced with its results tomorrow, the reports suggested.Revenue increased at advertising firm Aegis during the first quarter against strong comparatives, but fell when acquisitions and a "significant" exchange rate benefit are excluded. Group revenue rose 6.5% in the first three months of 2009, up 4.8% at Aegis Media and 9.6% at the Synovate market research unit. Net revenue was up 10.9%.Merchant bank Close Brothers has sold Daiwa Securities its corporate finance advisory business for a net cash consideration of £67m. Close Brothers will receive gross consideration of £75m but will contribute £8m of working capital prior to completion.