London pre-open: Late rally in US to spark rise on FTSE

24th May 2012 07:29

City sources predict the FTSE 100 will open up 44 points from yesterday's close of 5,266, regaining some of yesterday's hefty losses after late rally in the US gave a much needed boost to market sentiment. Royal Dutch Shell has extended its offer for AIM-listed oil explorer Cove Energy after being trumped by Thai firm PTT Exploration and Production (PTTEP) on Wednesday. Shell, which had previously had its 220p-a-share cash offer recommended by Cove, says that the new closing date for the offer will be June 13th at 13:00 (the last deadline was May 23rd at 13:00).Strong growth in Latin America and Africa offset declines in crisis-torn Europe for lager brewer SABMiller last year. Group revenue in the 12 months to March 31st rose 11% to $31,388m from $28,311m the year before. Earnings before interest, tax and amortisation (EBITA) rose 12% to $5,634m from $5,044m a year earlier while adjusted profit before tax climbed 13% to $5,062m from $4,491m.Switzerland-based iron ore group Ferrexpo has assured investors that it continues to operate at full capacity and has seen 'good' demand for its iron ore pellets in the year to date. In the period to April 30th, own ore pellet production was 6.2% higher than the same period in 2011. However, sales were unchanged year-on-year as the average selling price fell 9% "reflecting customer mix and lower market prices", the company said.