London pre-open: FTSE set for reverse of Monday's losses

24th Apr 2012 07:28

City sources predict the FTSE 100 will open up 20 points from yesterday's close of 5,666, recovering somewhat from yesterday's losses which came on the back of worse-than-expected economic data and the resignation of the Dutch government after it failed to come to an agreement over spending cuts. Shell Exploration and Production (Shell Bidco) has reached an agreement with AIM-listed oil and gas group Cove Energy on the terms of a recommended cash offer of 220p per Cove share, up from the proposed offer of 195p per share back in February. Shell Bidco, a wholly-owned subsidiary of oil giant Royal Dutch Shell, says that the offer values east Africa-focused Cove at £1,120m and represents a premium of 134% to the closing price of 94p as of December 12th, the day before Cove put itself up for sale.Interim profits from Primark owner and foods group Associated British Foods came in bang in line with market expectations, with the sugar businesses sweetening the performance considerably. Adjusted operating profit of £412m in the 24 weeks ended March 3rd was up 6% on the corresponding period a year earlier, and consistent with market expectations.Publishing group Reed Elsevier has reaffirmed its full year guidance of another year of underlying revenue and profit growth after a first quarter which saw a continuation of trends seen in 2011. Portfolio development continued during the period, with acquisitions of complementary online subscription services and exhibitions in emerging markets, and divestment of a number of advertising-based businesses and certain print products, the company's statement said.