Aviva (AV.) has abandoned plans to sell its Singapore and China operations, despite carrying out a strategic review that had been widely expected to lead to a $2.5 billion sale of the businesses. Shares in the British insurer fell after it said that it would retain them, making it the biggest faller in the FTSE 100 yesterday. Aviva said yesterday that it would keep its business in Singapore — its largest in the region, generating £140 million in profit last year — and its joint venture in China. It is thought to have failed to attract a high enough price for the divisions as most international insurers already have operations in those markets.
Consort Medical (CSRT) has agreed a £505 million takeover by a Swedish rival. Shares leapt yesterday after news broke of the cash offer from Recipharm, which values Consort at £10.10 a share. The British business’s directors plan to unanimously recommend the bid. The offer represents a 39.1% premium to Consort’s share price of 726p on Friday. Consort employs about 2,000 people, of which 1,400 are in Britain at sites including Hemel Hempstead, King’s Lynn, Cambridge, Milton Keynes and Cramlington, Northumberland.
Robert Tchenguiz, the colourful financier and property investor, has heavily criticised the management of FirstGroup (FGP) and threatened to push for an extraordinary general meeting to force a break-up of the trains and buses company. Mr Tchenguiz, who has a 4.7% economic interest in First Group, accused the company’s management of being “ambiguous, confusing and misleading” about the group’s future in statements it made to the stock market last week that took 20 per cent off the value of the shares. He was immediately supported in a statement released to the Stock Exchange by Coast Capital, the activist US investor which has built up a 10% stake in First Group
A provider of specialist industrial parts and goods yesterday committed itself to continuing double-digit growth and increased its dividend by 14%. Shares in Diploma (DPLM) reached a new peak after it reported pre-tax profits up £11.7 million at £96.5 million on revenues 12% higher at £544 million in the year to the end of September. With the promise of more to come in a time of global trade uncertainty, the upbeat outlook was seen as a big tick for Johnny Thomson, 47, the company’s new chief executive. He was recruited from Compass earlier in the year after he had failed to land the top job at the contract caterer.
The value of one of Britain’s biggest microchip producers tumbled by a quarter yesterday after it warned that upheavals in the smartphone market would push it to an annual loss. IQE (IQE), which sells wafers to chip manufacturers, cut its revenue forecast because of what it called “very challenging market conditions”. It said that it expected turnover of £136 million to £142 million, weaker than its previous forecast of £140 million to £160 million, and a “mid-single-digit adjusted operating loss” for the full year. That sent shares in IQE down capping a miserable period in which the semiconductor maker was hit by a slowdown in sales of Apple iPhones last year and by the effects of the US-China trade talks.
A leading pawnbroker has stopped lending to some of its customers amid a review by the City regulator. H&T Group (HAT) said that it was working with the Financial Conduct Authority and was looking at its creditworthiness assessments and lending processes for high-cost, short-term unsecured loans over the past six years. The average high-cost, short-term unsecured loan portfolio over the period was £3 million and the total in customer interest payments was £24 million. Excluding impairments, revenue was £11 million.
Sage Group (SGE) has abandoned its attempts to compete head-on with the likes of Paypal and Stripe in online payments. Sage agreed yesterday to sell its Sage Pay business to America’s fifth largest commercial bank for £232 million. The deal with Elavon, which is owned by US Bancorp, will result in Sage bowing out of the fast-growing but brutally competitive market. The division offers businesses access to online payment software, card terminals and point-of-sales technology through phone and tablet apps. Sage said that it would continue to offer payments services to its clients through a partnership with its soon-to-be-former subsidiary.
