Wincanton (WIN) has abandoned efforts to buy troubled rival Eddie Stobart Logistics (ESL). The logistics firm said it had decided to drop its plans because of concerns about haulage group Eddie Stobart’s financial performance and liquidity. It means an alternative rescue deal put together by major shareholder DBAY Advisors, backed by the company’s board, is likely to go ahead. Eddie Stobart said it was disappointed with Wincanton’s decision.The firm was plunged into crisis in August when a black hole in its accounts of more than £2million was discovered, triggering the suspension of its shares and the exit of boss Alex Laffey.
Future (FUTR) boss is in line for a bonus worth more than £18million. Zillah Byng-Thorne is expected to be handed about 1.24m shares under a performance-related scheme after hitting targets on profits and the stock price at the magazine publisher. Shares in the business – which publishes 132 titles including Classic Rock, Four Four Two and Total Film – stood at 83p when she took over in April 2014. Last night they closed up 66p, at 1480p. An investor who bought £1,000 of Future shares when Byng-Thorne became chief executive would have stock worth nearly £18,000.
Mike Ashley’s is to change its name to Frasers as the tycoon continues his efforts to go upmarket. The retailer last night said it would hold a shareholder vote on the change at a meeting on December 16 in London. It would see Sports Direct’s stock market ticker change from SPD to FRAS the next day. But it will not affect the Sports Direct stores. The change is almost certain to be approved because the vote requires 75% support and Ashley controls 63% of shares.
Unilever (ULVR) has insisted that PG Tips is not for sale. Nitin Paranjpe, the consumer group’s chief operating officer, said the tea remained a ‘strong brand’ and that it was looking for ways to boost sales. The comments came after the consumer goods giant, which also owns Marmite and Ben & Jerry’s ice cream, reportedly told investors that it wanted to ‘be rid’ of its black tea businesses because of changing customer tastes. But asked if PG Tips had a future at the company, Paranjpe said: ‘We believe it does, and we are working to see how we will drive growth in those areas.’ But he did not rule out a sale in future.
Hopes that snapping up Wagamama would boost troubled Frankie & Benny’s owner Restaurant Group (RTN) have been dented after it said growth had slowed. Shares in The Restaurant Group slid 7% on Monday morning after the firm warned that even the recently-acquired popular Asian food chain Wagamama will not be immune to the headwinds battering the casual dining sector. While sales continued to grow and Wagamama celebrated its first ever £1million takeaway week, the chain’s growth has slipped back from double-digit figures. As the restaurant reported a marked slowdown in growth, Wagamama boss Emma Woods said: ‘We look forward to 2020, and whilst we don’t expect to be immune to the various headwinds facing our industry, we will stay true to our positive culture and growth mindset,’ she said.
Gold mining minnow Ariana Resources (AAU) rocketed after it signed an agreement to potentially partner with a Turkish construction group. Under the deal, known as a memorandum of understanding, the unnamed construction firm would spend more than £23million buying stakes in two of Ariana’s mining projects in Turkey. The possible partner would also inject a further £6million directly into developing one of the mines.
International Consolidated Airlines Group SA (CDI) (IAG) was in favour as investors welcomed a pay deal with its pilots’ union. Traders – as well as passengers – will be hoping the pact with Balpa heads off the risks of strikes at Christmas. The disagreement over pilots’ pay led to the first strikes in BA’s history in September, which saw 2,325 flights cancelled and cost IAG around £121million. Balpa has recommended a deal worth 12% over three years to its members, and the deal also agrees to improve working conditions and rostering. Members of the union still need to vote it through, but the City seems optimistic.
Solgold (SOLG) surged to 21.65p after heavyweight mining business BHP Group PLC (BHP) paid £17million to raise its holding in the company from 11% to 14.7%, making it the largest shareholder. BHP bought 77m shares at 22.15p – 13% higher than the price of Solgold’s stock before the deal. It is another sign that big miners are keen to buy into copper projects as demand for electric cars soars.
