The takeover battle for Just Eat (JE.) heated up on Monday as its preferred merger partner launched an attack on the investment vehicle that is trying to gatecrash the party. Just Eat has recommended its shareholders accept a merger with Takeaway.com, but investment vehicle Prosus is trying to derail the deal with its own £4.9billion cash bid for Just Eat. Prosus also has a stakes in Delivery Hero and Takeaway.com but is pushing to bring Delivery Hero and Just Eat together and has been selling down its stake in Takeaway.com. Takeaway.com has now demanded that Prosus does not vote in the proposed Just Eat merger, claiming there is a conflict of interest. The issue arose after Prosus started selling off its stake in Takeaway.com at below-market prices, which has subsequently pushed Takeaway.com’s share price down. Because the proposed merger is based on Just Eat shareholders being given shares in Takeaway.com, there is now concern that the deal may not go through because the value of the deal has dropped as shares continue to fall.
Sir Martin Sorrell splashed out on two more acquisitions in the UK and South Korea as he continues to grow his new advertising firm S4 Capital (SFOR). Sorrell is acquiring digital analytics firms ConversionWorks, which is based in London, and Datalicious Korea, based in Seoul. MightyHive, a part of S4 , will merge with the two companies, which will then be rebranded as MightyHive, the group said. ConversionWorks helps firms such as Boots, Diageo, Schuh, Giffgaff and Wiggle predict how their customers will behave, target them, and gather data. Datalicious Korea helps firms measure if their social media campaigns are paying off and its clients include Samsung, Adidas Korea, and Lotte Members. The new additions are just the latest of a string of acquisitions which has seen the group expand to 15 countries and 21 cities.
The boss of HSBC Holdings (HSBA) has pledged to speed up plans to ‘remodel’ the bank as profits fell by nearly a fifth amid weakness in Britain, Europe and the US. Noel Quinn said profits held up well in Asia – its main market – despite unrest in Hong Kong. ‘However, in some parts, performance was not acceptable, principally business activities within continental Europe, the non-ring-fenced bank in the UK, and the US,’ he said. ‘Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth. We are therefore accelerating plans to remodel them, and move capital into higher growth and return opportunities.’ His comments follow recent reports claiming Quinn had plans to cut up to 10,000 jobs in a bid to slash costs and stamp his mark on the global banking group.
Aston Martin Holdings (AML) suffered a reversal following a fierce downgrade from Bank of America Merrill Lynch. Analysts think the troubled luxury car maker will cut its 2019 outlook again and believe the company had a ‘very weak’ third quarter. Lacklustre demand for its pricey cars could be revived when it launches its DBX sports utility vehicle in December. But analysts at the American investment bank point out that the company’s debt mountain is piling ever higher and short-term loans arranged this summer have provided no long-term solution to Aston’s financial car crash. They downgraded Aston’s stock for the second time this year, putting it at ‘underperform’ from ‘neutral’, and lowered its target price from 550p to 400p.
Cairn Energy (CNE) shares slumped following a double-dose of bad news. It abandoned a dud well off the coast of Mexico after failing to find any oil or gas in it and, separately, said it faces a further delay to its £1 billion-plus tax claim against the Indian government.
edged up after announcing share awards to chief executive David Thomas, operations chief Steven Boyes and finance boss Jessica White. Thomas was handed £327,000 worth of shares in a bonus plan for 2019. He was awarded up to £1.5m worth of stock – 238,000 shares – in a long–term share plan that will become available in 2022 if he meets certain targets. Boyes was given a £287,000 bonus and a long–term share plan worth £1.2m, while White pocketed £203,000 from the bonus and was handed another £859,000 under the 2022 scheme.
RBC Capital Markets analysts gave GVC Holdings (GVC) their stamp of approval as they started coverage of the UK gambling sector. GVC was named RBC’s top pick and given an ‘outperform’ rating, with brokers praising its ‘excellent track record’ of assimilating acquired firms into the group. Flutter Entertainment (FLTR) merger with The Stars Group was dubbed ‘an unparalleled revenue opportunity’, but analysts are holding back slightly until the deal is completed. But RBC brokers put William Hill (WMH) on the naughty step for ‘lagging’ in an industry ‘where scale matters’ and lots of other companies have combined to protect themselves.
Sirius Minerals (SXX) started the week on the right foot as investor forums were awash with hopeful chatter that later this week the potash miner could offer an update on its strategic review. Boss Chris Fraser previously said the outcome could be pinned down by the end of October.
Emmerson (EML) rallied after it announced its Khemisset project in Morocco has 72% more potash in it than the firm previously thought, or around 537m tons.
