UK MARKET TALK ROUNDUP: BROKERS COMMENTS

21st Jul 2010 07:37

Broker comments in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 0637 GMT [Dow Jones] The acquisition of SSL International (SSL.LN) by Reckitt Benckiser (RB.LN) is likely to be highly earnings accretive for Reckitt, says an analyst. Thinks synergies could be in the region of 10%-15% of SSL sales. But questions why Reckitt has waited so long to make a move, as SSL shares have doubled in the past 12 months alone. Regardless, does not anticipate another buyer entering the field and expects Reckitt's shares to rise sharply, Wednesday. Reckitt closed on Tuesday at 3190p. ([email protected]) 0625 GMT [Dow Jones] JPMorgan Cazenove downgrades Cable & Wireless Worldwide (CW.LN) to underweight from neutral following its profit warning, due to a slowdown in UK public spending. Thinks it will take some time to rebuild confidence in the investment case following the news. As a result of the slowdown, says the management increases cost reduction initiatives and now expects total operation expenditure to reduce year-on-year. Says C&W Worldwide management therefore expects slower growth in Ebitda, around the lower end of the range of expectations. Analysts' forecasts ranged between GBP452M and GBP484M before the announcement. Shares closed Tuesday at 69p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 21, 2010 02:37 ET (06:37 GMT)