The battle over Just Eat (JE.) has intensified after one of the suitors lowered the bar on its hostile takeover offer. Investment firm Prosus said it now needs to win the backing of 75% of the food delivery group’s shareholders – down from the previous target of 90%. Prosus is attempting to hijack a previously agreed deal that would see Just Eat bought by rival Takeaway.com. Prosus chief executive Bob van Dijk said there was no need to increase his 710p-per-share offer, or £4.9 billion, in order to win over investors. ‘We believe it offers fair value and gives shareholders certainty,’ he said, contrasting his company’s cash bid with Takeaway’s offer, which will be paid in shares. However, Just Eat’s board stuck to its guns, once again rejecting van Dijk’s bid to win its business because the offer ‘fails to appropriately reflect the quality of Just Eat’.
Greggs (GRG) has raised its profits forecast for the fourth time this year – sending its valuation soaring to over £2 billion. More customers are visiting the bakery chain’s stores, and a total sales increase of 12.4% in the past six weeks compared to the same period last year pushed shares up. The Newcastle-based company’s £2.1 billion market capitalisation is bigger than outsourcer Serco’s and self-storage company Big Yellow Group. Greggs had previously been expecting full-year profits to be around £107m on revenues of £1.16 billion, according to its house broker. But the business said it anticipates profits ‘to be higher than our previous expectations’.
Union Jack Oil (UJO) took a 16.67% stake in West Newton at the end of 2018 ahead of a drilling programme designed to prove what was believed to be a sizeable gas discovery. Results in June from the A2 appraisal well indicated there was a sizeable gas discovery, but subsequent work has also indicated an additional bonus. Analysis from the operator suggests that the Kirkham Abbey reservoir at West Newton might prove to be among the largest oil discoveries so far made onshore in the UK. According to the latest update, Kirkham Abbey contains 146.4million barrels of oil in place and 211.5billion cubic feet (bcf) of gas on a base or most conservative estimate. ‘The estimated resource volumes therefore firmly categorise West Newton as having significant ‘company maker’ potential in our view,’ according to SP Angel, Union Jack’s broker.
A recovery could be on the way for Aston Martin Holdings (AML), according to HSBC. Analysts at the bank are encouraging investors to snap up Aston’s cut-price stock, upgrading it to ‘buy’ from ‘hold’ and lifting its target price from 533p to 550p. After a disastrous first year as a public company, the recent third-quarter results were a relief to investors and the future looks brighter for the struggling luxury car maker. Although it published a third-quarter loss of £13.5m, it left its full-year guidance unchanged – pleasantly surprising the City, which was widely expecting another downgrade. The upcoming James Bond film No Time To Die, featuring four Astons, will provide a boost, HSBC says. And the launch of its family-targeted SUV, the DBX, could be ‘a turning point for the equity story’. ‘After months of underperformance and the future of the company at stake, we believe the launch of the DBX is potentially game-changing,’ HSBC analysts said, adding that it’s ‘no time to die’ for Aston just yet.
Rolls-Royce Holdings (RR.) tumbled after Societe Generale analysts downgraded it to ‘hold’ from ‘buy’ and cut its target price to 825p from 930p. Last week Rolls cut its outlook and said it will take a £1.4 billion one-off charge this year amid engine issues.
Beazley (BEZ) fell 33p, to 544p, after UBS kept its ‘buy’ rating on the company but trimmed its target price back from 650p to 630p. Analysts believe Beazley is better prepared than most firms for an expected downturn in an area of the market that looks after vehicle and theft insurance. But they also think it will need to keep building up buffer funds to protect itself well into next year.
