London pre-open: FTSE to soar after EU agreement

29th Jun 2012 07:37

City sources predict the FTSE 100 will open up 102 points from yesterday's close of 5,493, after the EU made a surprise agreement to allow banks to use the Eurozone's bailout funds to boost the region's struggling banks. Following more than 12 hours of discussions in Brussels, the 'breakthrough' deal was announced, under which a Eurozone-wide supervisory body for banks will be created. International outsourcing firm Serco has completed the disposal of its Technical Services business to engineering giant AMEC for a total of £137m. Serco said it saw limited future revenue growth for TS in a highly competitive market, "where future growth is likely to be more orientated toward the civil market and in particular the build of new nuclear power stations". It added that AMEC would be "better placed" to benefit from this shift.Engineering buy-out firm Melrose is looking to buy Elster Group through its subsidiary Mintford, valuing the firm at around $2.3bn, or £1.5bn. "Elster is a good manufacturing business with further potential which serves strong end markets with attractive long term demand drivers such as growing global energy demand, energy efficiency and conservation and global gasification," Melrose said.Dairy Crest Group has received a binding offer from Montagu Private Equity for the proposed disposal of the entire issued share capital of St Hubert following a strategic review of the low fat spreads business. Montagu is offering a consideration of €430m (£344m) in cash for St Hubert, which Dairy Crest purchased in 2007 for €370m at a time when it planned to make further synergistic acquisitions in Continental Europe. Given that this was unable to occur, Dairy Crest believe the sale offers the best option for shareholders. If the sale goes ahead, the proceeds will initially be used to reduce net debt.