London pre-open: The only way is down

18th Nov 2011 07:41

Footsie may have rallied yesterday afternoon to pare its losses but after last night's lacklustre showing on Wall Street, the blue-chip index is set to resume its downward course this morning.City sources predict the FTSE 100 will open down 59 points from yesterday's close of 5,423. Outsourcing colossus Capita said it is still relying on acquisitions to achieve top-line growth, as its businesses find it harder to eke more money out of existing customers. The company is on course to achieve 7% revenue growth for the full year, with recent acquisitions adding around 14% to revenue. Having seen an organic revenue decline of 7% in the first half of the financial year, the company said this trend has continued into the second half. The good news is that margins are golding up.Mining giant Rio Tinto has, as expected, upped the terms of its agreed bid for Canadian uranium firm Hathor Exploration, after rival bidder Cameco trumped its initial offer. Rio Tinto's increased offer values Hathor at around C$654m, and represents a premium to Cameco's revised offer of C$4.50 per common share made on 14 November 2011. Rio is offering C$4.70 in cash per Hathor share.Irish oil firm Tullow said its Teak-3A appraisal well off the coast of Ghana has been a success. The well confirmed a northern extension of the Teak discovery on the West Cape Three Points Block offshore Ghana. Analysis of the drilling results identified 13 metres (43 feet) of 36-39 degree API gravity and 22 metres (72 feet) of gas-condensate pay. --jh