Michael Kors to buy Versace for $2bn. Gianni Versace’s fashion empire is poised to fall into American hands 21 years after the Italian designer was murdered outside his mansion in Miami. Michael Kors, the fashion retailer known for upmarket but affordable apparel and accessories, is expected to pay about $2 billion for Versace, closing a chapter in the colourful story of one of the world’s best-known brands.
Sky falls in on Comcast share price. Comcast’s delight in landing Sky (SKY) proved to be shortlived yesterday as investors wiped nearly $10 billion off the value of America’s largest cable provider. The company’s share price fell by 6% to $35.63 — its worst day in almost three years — amid concerns that Brian Roberts, chief executive, is paying too much for Europe’s biggest pay-TV company. Comcast secured control of Sky on Saturday after a three-round auction, outgunning 21st Century Fox, bidding with the support of Disney. Comcast is paying £30.6 billion for Sky and its 23 million subscribers in Britain, Ireland, Germany, Italy and Austria.
Barrick and Randgold claim $6bn takeover deal is pure gold. Barrick Gold is set to buy Randgold Resources Ltd. (RRS) for $6 billion via an all-share deal that will create the world’s biggest goldminer. The new combined Barrick Group will be worth more than $18 billion, at Friday’s prices. It will own half of the world’s ten highest-quality goldmines and will have two of the industry’s biggest characters at its helm.
A big natural gas discovery has been made off the Shetland Islands that experts believe could be the biggest in British waters for a decade. Early estimates for the find made by Total, the French oil major, suggest that there could be one trillion cubic feet of gas, equivalent to more than 175 million barrels of oil, at the Glendronach prospect in the North Sea. Analysts from Wood Mackenzie, the energy consultancy, said that figure would make it the largest find since the Culzean gasfield in 2008. The area west of Shetland, which is relatively unexplored, is seen as one of the most exciting areas for the UK continental shelf, with oil industry giants such as Total, BP (BP.) and Royal Dutch Shell ‘B’ (RDSB) investing heavily alongside independents such as Hurricane Energy (HUR) and Siccar Point Energy. Total owns 60% of the Glendronach site alongside SSE (SSE), the gas and electricity provider, and Ineos, the chemicals group, each of which has a 20% interest.
Thomas Cook warns on profits after a summer too hot to handle. More than £300 million was wiped off the value of Thomas Cook Group (TCG) yesterday after what one analyst described as “a stinker of a profit warning”. The travel group’s shares fell by 21¾p to 56p, a 28% slump that sliced £336 million off its market capitalisation, after it admitted that the impact of the scorching summer weather on margins in the so-called lates market had been much worse than it expected. Investors’ jitters were compounded by the travel group announcing that Bill Scott would be leaving as chief financial officer at the end of next month after less than a year in the job.
Egyptian hotel deaths ‘had huge impact’ on Thomas Cook Group (TCG). The deaths of John and Susan Cooper at an Egyptian hotel while on a Thomas Cook holiday have had a “huge impact” on the tour operator, its chief executive said yesterday. Mr Cooper, 69, and Mrs Cooper, 63, died last month at the Steigenberger Aqua Magic Hotel in Hurghada, Egypt. Post-mortem examinations found that E. coli had been a factor in their death. Peter Fankhauser, chief executive of Thomas Cook, said that the deaths had “a huge impact on this organisation and has dominated a lot of my thoughts and actions since”.
Debenhams puts hope in makeover. Debenhams (DEB) is to shift its focus to newer but fewer items as speculation mounts over its financial health. The department stores chain will open a new outlet in Watford this week, with 25 per cent less stock and fresh products updated every week. The move comes as executives continue to face questions over the company’s performance. Having rushed out updated guidance in the wake of three profit warnings in quick succession this month, it emerged yesterday that WH Smith had stopped selling Debenhams gift cards.
Sir Christopher Hohn’s hedge fund has sold the majority of its stake in the London Stock Exchange Group (LSE), less than a year after its failed attempt to oust the exchange’s chairman. TCI Fund Management has reduced its stake in the exchange to 1.8% from 5.1%, according to a regulatory filing published yesterday.
A profit warning from Thomas Cook Group (TCG) sent its shares down 21¾p to 56p. Rival travel companies followed suit: TUI AG Reg Shs (DI) (TUI) fell 42p to £13.82, although analysts at Shore Capital said that the weakness in the Tui price was a “buying opportunity”, given the increasing proportion of profits now derived from “higher-quality content”, including cruising and hotels.
Elsewhere, water suppliers drifted after John McDonnell, the shadow chancellor, said that Labour was launching a consultation on a publicly owned water system. “We are ending the profiteering in dividends, vast executive salaries and excessive interest payments,” he said. United Utilities Group (UU.) was down 13½p to 688½p, Severn Trent (SVT) dipped 47½p to £18.31 and Pennon Group (PNN) fell 18p to 706½p.
Just Group (JUST), the FTSE 250 specialist in retirement products and services, jumped 7% before settling up 1¼p, or 1.6%, at 81½p amid talk that it is being eyed as a takeover target. The company’s shares are down by 52.5% this year, since the Prudential Regulation Authority began a consultation on additional capital requirements for the providers of lifetime mortgages. The market has factored in the company having to raise an estimated £400 million, according to Credit Suisse.
Dealers were watching W H Ireland Group (WHI), the stockbroker, after Oceanwood Capital Management was revealed to have tightened its ownership from 17.9% to 23.8%. The shares closed down 2p at 100½p.
Boku, Inc (DI) Reg S (BOKU) rose 1p to 173½p after it announed a deal with Rakuten Collection, which specialises in collectible items popular in Japan.
Condolences were being delivered to a FTSE 250 greeting card retailer yesterday as investors sold shares before its first-half results. Card Factory (CARD) gave a glimpse of its poor numbers in a profit warning last month, so today’s results will be all about whether it has a convincing strategy to reverse its fall in like-for-like sales before the vital Christmas period. Jonathan Pritchard, retail analyst at Peel Hunt, said that investors would be looking for improvements in its product range and in the navigability of its stores, alongside evidence that it can compete online with Moonpig and Funky Pigeon.
Tempus – Drax Group (DRX): Avoid. Drax is taking all the right steps for life after coal but still has much to prove
Tempus – Pennon Group (PNN): Hold. Growth at its waste management division is strong but not spectacular
