London pre-open: Stocks set to edge higher

22nd Feb 2012 07:33

City sources predict the FTSE 100 will open slightly higher, up 6 points from yesterday's close of 5,928 as investors balance relief over this week's Greek bailout deal with concerns over its ability to effectively deal with the economic situation. Anglo-Dutch integrated oil company Royal Dutch Shell has launched a bid for Cove Energy, the AIM-listed oil and gas company which put itself up for sale in January. Shell is offering 195p per Cove share in a deal that values the east Africa-focused company at around £992.4m. At the close of business prior to the announcement of Shell's bid Cove was trading at 154.5p.Consumer packaging company Rexam saw underlying profits growth race ahead of sluggish sales growth on the back of a better than expected performance in its Beverage Cans business, primarily in Europe. Underlying profit before tax rose 15% in 2011 to £450m from £390m in 2010, ahead of market expectations of £443m. Sales edged up 2% to £4,734m from £4,619m in 2010; the median forecast from the range of analysts covering the stock was for sales of £4,716m.British Gas owner Centrica is to acquire the Total E&P UK's non-operated portfolio of producing oil and gas assets (and associated infrastructure) in the Central North Sea (CNS) for $388m (£246m). The acquisition is expected to add around 5% to Centrica's existing 2P (proven plus probable) reserves, an addition of 22m barrels of oil equivalents (36% gas, 64% oil).