Every share counts in Unilever’s Dutch vote. Tens of thousands of retail investors could decide the future of plans by Unilever (ULVR) to relocate its headquarters to the Netherlands. Details of its proposal to abandon its 88-year Anglo-Dutch dual governance structure show that it needs approval from at least 75 per cent of the shares in Unilever’s UK-listed entity that participate in the vote, but also a majority of voting shareholders by number. This means that a retail investor with a single share in the consumer goods group could be as influential as a City institution with millions of shares.
Uber talks on Deliveroo merger Just Eat’s shares. Merger talks between Uber and Deliveroo are “potentially terrifying” for Just Eat (JE.), analysts warned yesterday as shares in the British takeaway delivery company nosedived. A merger would lead to a “war for market share” that would be “very damaging” to Just Eat’s profits, analysts at Canaccord Genuity said. Just Eat shares fell by as much as 9 per cent at one point in London before paring some of the losses to close down 4.8% at 674p.
21st Century Fox and Comcast set to learn Sky (SKY) takeover fate. 21st Century Fox, the film and television giant, and Comcast, the US cable provider, have until late this afternoon to table their final and best bids. The Takeover Panel will unveil the winner this evening. It was forced into a three-round sealed bids sale after the bidders failed to declare full and final offers this week. The outcome will end nearly two years of uncertainty for Sky, which agreed to be acquired by 21st Century Fox in 2016. Since then, the New York-based media group has agreed to sell most of its entertainment assets to Disney, including its film studio and 39% stake in Sky.
Smiths accepts its medicine as struggling business hits results. Tough trading at Smiths Group (SMIN) medical business, which it has just pulled from a £2.8 billion takeover deal, has knocked 8% off the conglomerate’s pre-tax profits. The news that Smiths’ pre-tax profits for the year to the end of the July were £487 million, on revenues down 2 per cent at £3.2 billion, in turn hit its share price, which tumbled by 10% to levels not seen since 2016 before rallying to close 70½p down at £15.20½.
RBS chief Ross McEwan apologises in ‘misleading evidence’ row. The chief executive of Royal Bank of Scotland Group (RBS) has apologised after being accused of deliberately misleading MPs to avoid disclosing a police investigation into an alleged bribery scandal at the bank’s restructuring division. Ross McEwan said that he was sorry if evidence he gave to the Treasury select committee in January had been “taken in the wrong way” and said he “absolutely” regretted not giving a fuller response.
Moss Bros out of style in World Cup summer. Shares in Moss Bros Group (MOSB) fell by nearly 30% at one point yesterday after the menswear hirer and retailer warned that its full-year profits would miss expectations. Brian Brick, chief executive, said that its 2018 performance had been “one of the most volatile for many years”. Its business had been “significantly impacted” by the World Cup and warmer than usual summer. “The position was exacerbated by the distressed discounting of some competitors, although we have taken the decision to stand firm on pricing where we feel Moss Bros’ product has a strong USP,” Mr Brick said.
Burberry Group (BRBY) left visitors to London Fashion Week in no doubt of the scale of its self-confidence: “Kingdom” was the grandiose title granted to the highly anticipated debut collection of Riccardo Tisci, its new creative director. That confidence is not shared by everyone. Analysts renewed their attack on the £8.2 billion company yesterday after executives indicated that it could take three seasons for changes to provide sales with a significant boost. Credit Suisse downgraded Burberry from “outperform” to “neutral,” citing a lack of potentially stock-boosting factors on the horizon.
In London, heavyweight miners dominated the Footsie leaderboard as metal prices rose. Glencore (GLEN) gained 15p to 336¾p, Antofagasta (ANTO) climbed 37¾p to 895¾p, Anglo American (AAL) was up 65½p to £17.60¾ and picked up 60p to £16.78.
After a bumpy week, Kingfisher (KGF) bounced back. The retailer behind B&Q and Screwfix closed 13½p higher, topping the FTSE 100 and closing at 256¼p.
Oil prices were rising ahead of Sunday’s meeting of the Opec cartel, lifting Royal Dutch Shell ‘B’ (RDSB) and BP (BP.) by 54½p to £25.68½ and 11½p to 567p, respectively.
Investors threw out Just Eat (JE.) like a cold takeaway. Shares in the food delivery company slipped almost 5%, or 34p, to 674p, after reports that Uber, the company behind the taxi-hailing service, was in talks with Deliveroo, a rival, over a takeover.
Next (NXT) struggled after Jefferies cut its target from £61 to £56, citing a “more depressed valuation context”. Retaining its “hold” rating, the broker predicted that the stock would “remain hostage of the impending Brexit process, at a time when UK consumers are still reluctant to spend, given a lack of visibility as we approach March 2019”.
Smiths Group (SMIN) slipped 70½p to a five-month low of £15.20½ after the engineering, medical and technology company fell short of expectations.
With copper trading at a six-week high, Kaz Minerals (KAZ) drove the mid-cap index higher, jumping 53p to 584p.
Neil Woodford, the fund manager, continues to increase his interest in Kier Group (KIE), the construction services group. Its shares closed broadly flat, shedding a penny to £10.38, after a stock market filing revealed that Woodford Investment Management had boosted its stake from 10% to 11.15%. It is Kier’s second largest shareholder.
