The FTSE 100 closed higher on Monday, reversing earlier losses.
The index was boosted by gains from Ocado Group PLC, J Sainsbury
PLC and Evraz PLC, which offset losses from HSBC Holdings PLC, SSE
PLC and Compass Group. "A quiet economic calendar in both Europe
and the U.S. is giving trades little to really sink their teeth
into," said Sophie Griffiths, market analyst at Oanda.
Wm. Morrison Supermarkets Rejects $7.65 Bln Clayton Dubilier
& Rice Offer Proposal
Wm. Morrison Supermarkets PLC said Saturday that it has rejected
a 5.54 billion-pound ($7.65 billion) possible cash offer by Clayton
Dubilier & Rice LLC as it "significantly undervalued" the
company and its future prospects.
Capita on Track to Deliver Revenue Growth in 2021
Capita PLC said Monday that performance has improved in the
first half of this year and that it remains on track to deliver
full-year revenue growth--its first in six years.
Hotel Chocolat Takes Full Control of Beauty Products JV
Hotel Chocolat Group PLC said Monday that it has agreed to take
full control of its Rabot 1745 Ltd. joint venture, created by the
company and Chairman Andrew Gerrie in 2016 to develop a range of
Amino Technologies Chairman Karen Bach to Step Down; Plans
Change of Name
Amino Technologies PLC said Monday that Nonexecutive Chairman
Karen Bach is stepping down, and that the company plans to change
Litigation Capital Management to Book Return on New Zealand
Litigation Capital Management Ltd. said Monday that it expects a
return on its investment in a legal dispute in New Zealand in which
the country's High Court has issued a judgment in favor of the
plaintiff the company funded.
Providence Resources Chairman to Step Down in July
Providence Resources PLC said Monday that Nonexecutive Chairman
Pat Plunkett is stepping down.
Silver Bullet Data Services to Raise GBP9.5M in London IPO
Silver Bullet Data Services Group PLC said Monday that it plans
to raise 9.5 million pounds ($13.1 million) as part of its initial
public offering on London's junior AIM.
BrandShield Systems 2020 Pretax Loss Widened on Takeover
BrandShield Systems PLC said Monday that its pretax loss for
2020 widened, in line with internal expectations, partly driven by
costs linked to its reverse takeover.
Venture Life Agrees to GBP30 Mln Loan
Venture Life Group PLC said Monday that it has agreed to a
revolving credit facility of up to 30 million pounds ($41.4
million) for an initial term of three years.
DaVictus Raises GBP36,000 in Equity Issue
London-listed acquisition vehicle daVictus PLC said Monday that
it has raised 36,000 pounds ($49,691) via an equity issue to
provide additional working capital for the company.
Saietta Group to Float on London's AIM Next Month
Saietta Group PLC said Monday that it plans to float on London's
AIM early next month.
Senior Shares Jump After Lone Star Makes Final $1.16 Bln
Shares in Senior PLC rose Monday after U.S. private-equity
investor Lone Star Funds LLC said it has made a fifth and final
proposal regarding a possible cash offer which values Senior at
838.8 million pounds ($1.16 billion).
Morrisons Takeover Bid May Climb Higher
1102 GMT - Wm. Morrison has put itself in a stronger position to
continue fighting competitive threats, but the key issue is how
significantly shareholders will respond to its latest takeover bid,
AJ Bell says. The U.K. supermarket's shareholders and management
may feel they can squeeze out a higher bid, or potentially feel
confident enough to spurn the offer altogether, the brokerage says.
Morrisons shares traded at 235 pence early Monday, higher than a
230 pence proposal from Clayton Dubilier & Rice. "The market
therefore seems confident that the suitor will have to raise its
offer price or someone else might step into the game and we'll see
a bidding war," the brokerage says. Morrisons shares are up 32% at
CreditSights Recommends Selling Morrisons' 2029 Bonds
1050 GMT - A potential leverage buyout of WM Morrison by a
private equity firm could hit the U.K. fourth-largest supermarket
chain's 2029 bonds the hardest and CreditSights recommends clients
to sell them. A change of control clause that provides a put option
to bondholders--giving them the right to demand the issuer pay back
the principal before the bond matures-- will potentially benefit
Morrisons' 2031 notes to a much greater degree than the 2029 paper,
which looks more vulnerable and least protected by the provision
should conditions be satisfied, it says. "Some 305 basis points of
spreads widening would need to occur [in the 2029 bond]before the
prospective floor of a 100 put would kick in versus just 60 bp on
the 2.5% 2031 [paper], it says.
Takeover Could Jeopardize Morrisons' IG Credit Rating
1036 GMT - WM Morrison's investment-grade credit rating could
come under pressure in a potential takeover, since taking the
company private would likely increase the U.K. supermarket chain's
debt levels, says CreditSights. Morrisons rejected an informal
offer from Clayton, Dubilier & Rice to buy the company for 230
pence per share. "Whilst we have not seen any of the pre-conditions
attached to the rejected bid we feel confident in assuming that a
substantial chunk of debt financing was among them," the credit
research firm says, adding that any successful bid from CD&R or
another private equity suitor is "likely to require further debt
incurrence which may well put pressure on its sole investment-grade
Private Equity Bid for Morrisons Is 'Reasonably Generous'
1021 GMT - Clayton Dubilier & Rice's rejected informal
takeover bid for Wm. Morrison looks reasonably generous and might
deter rivals from bidding for the U.K.'s fourth-largest supermarket
chain, CreditSights says. The U.S. private-equity group had offered
230 pence a share, which Morrisons rejected saying it
"significantly undervalued" the business and future prospects.
However, "in light of the rather flat performance of Morrisons's
share price this year and indeed over the last 20 years, the GBP8.7
billion valuation placed on the group looks reasonably generous,"
it says. "The 10.2 times [valuation] multiple is significantly
higher than peer transactions and thus may give pause to any rival
approaches from other PE sponsors," CreditSights says.
Kerry Group's Acquisition of Niacet Seen as Boost to
0945 GMT - Kerry Group's acquisition of Niacet, a provider of
preservation technologies, aligns with its strategy and materially
bolsters its food-protection and preservation platform, Davy
Research says. The EUR853 million deal dovetails with the recent
sale of part of the Irish nutrition group's consumer-food
operations and provides access to a new technology stack, Davy
says. "Kerry's food protection and preservation platform has been
built over many years--more recently, the platform was enhanced
with the acquisition of Fleischmann's Vinegar Company and
investment in its fermentation facility in Rochester, Minnesota,"
Davy says. Kerry shares in London rise 3.1%.
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
June 21, 2021 11:59 ET (15:59 GMT)
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