Superdry founder wins City support for return. Investors want Julian Dunkerton back on board. The battle for control of Superdry (SDRY) has been thrown wide open after two large shareholders gave their backing to Julian Dunkerton’s fight to return to the fashion retailer that he co-founded. Investec Asset Management and Schroders, which between them control about 10 per cent of the stock in Superdry, best known for its jackets emblazoned with Japanese characters, have decided to back Mr Dunkerton.
Boeing grounding to hit Tui profits by up to €300m. The fallout from the Boeing 737 Max safety crisis reached TUI AG Reg Shs (DI) (TUI) yesterday, with the FTSE 100 holiday company telling its investors that the grounding of the aircraft would hit its profits by up to €300 million. The profit warning, the second in seven weeks after Tui’s earlier revelation of a slump in margins, sent shares in the First Choice operator tumbling by 34¼p to 735½p, a fall of 4.4%. The shares are down by a half over the past 12 months.
Astrazeneca signs $6.9bn cancer drug deal with Daiichi Sankyo. One of Britain’s biggest pharmaceutical companies has struck a $6.9 billion deal for access to a potentially “transformative” cancer drug from a Japanese rival and set up a share placing to help to fund the move. AstraZeneca (AZN) has reached a global development and commercialisation agreement with Daiichi Sankyo for trastuzumab deruxtecan, a treatment in development for multiple cancers, including breast and gastric. It is the latest in a wave of multibillion-dollar deals in the pharmaceuticals industry, particularly in oncology where companies are racing to bolster their pipelines. It follows a similar £3.2 billion cancer agreement between Glaxosmithkline, its UK rival, and Merck of Germany last month and a separate £4 billion takeover of Tesaro of the US towards the end of last year.
Debenhams throws down challenge to Sports Direct. Mike Ashley’s must make a takeover offer for Debenhams (DEB) or underwrite a rescue rights issue if it is to avoid having its stake in the struggling department stores chain wiped out. The stark choices for Britain’s largest sportswear retailer were laid out by Debenhams as it revealed that it had secured a £200 million funding lifeline with its lenders.
Micro Focus shareholders hit delete on bonus scheme of Britain’s biggest software firm. Britain’s biggest software company has suffered a bruising defeat at the hands of investors over a possible £220 million bonus for top executives. Micro Focus International (MCRO) has joined a select band of FTSE 100 companies — including Royal Mail, BP and Royal Bank of Scotland — to have had their remuneration schemes voted down by shareholders. Its decision to give senior managers an extra 12 months to hit performance targets on a lucrative pay plan sparked a rebellion by 50.3% of its shareholders at the annual meeting yesterday.
Dutch plant throws up a heap of issues for Renewi (RWI). Months of problems at a Dutch treatment plant have forced a waste management provider to cut its profit guidance and proposed dividend. Renewi said yesterday that it may not be able to restart shipments of treated soil from the facility during the financial year, which would cut its earnings before interest and tax by about €25 million. The plant in the Hague is one of the biggest in Europe, It treats contaminated soil and water and disposes of waste such as paints and solvents.
Miners led a rally in London-listed stocks yesterday amid hopes of progress in talks between the United States and China to resolve their trade dispute. Steven Mnuchin, the US Treasury secretary, said in a tweet that he had concluded a “very productive” working dinner with Chinese negotiators in Beijing. The positive sentiment helped to steady US bond yields and to calm fears of an economic slowdown, which had cast a shadow over cyclical stocks. Metals prices advanced, in turn lifting miners’ share prices. Antofagasta (ANTO) rose 33½p to 966p; Anglo American (AAL) added 61¼p to £20.54; and Kaz Minerals (KAZ) closed up 32p at 653½p.
Housebuilders fell after MPs voted against Theresa May’s European Union withdrawal agreement, interpreted as making a no-deal Brexit more likely. Berkeley Group Holdings (The) (BKG) fell 70p to close at £36.89; Taylor Wimpey (TW.) dipped 2¾p to 175½p.
The risk of a general election and a Labour government nationalising services depressed utilities. SSE (SSE), the electricity and gas supplier, slid 16p to £11.87; Severn Trent (SVT), the water company fell 24p to £19.76; and United Utilities Group (UU.), the water supplier, tumbled 9¾p to 814½p.
CVS Group (CVSG) issued an upbeat update alongside its half-year results, which reassured shareholders after a profit warning in January. Richard Connell, 64, chairman of the integrated veterinary services provider, said that it had made “significant improvement” on cost and operational issues. He said that veterinary surgeon and nurse vacancies had fallen, cutting reliance on costly locums, and sales growth had improved.
Wizz Air Holdings (WIZZ) encountered turbulence after a company closely associated with Jozsef Varadi, its chief executive, was revealed to have sold almost £2.2 million of shares, the third significant director share sale at the budget airline this year. The sale put off some investors, sending its shares down 52p to £30.10.
Man Group (EMG) rose 5p to 135¾p after Credit Suisse initiated coverage of the alternative investment manager with an “outperform” rating.
Duncan Painter, chief executive of Ascential (ASCL), the information group, spent almost £150,000 buying shares, it was revealed. The shares closed up 14¼p at 356½p.
Hutchison China Meditech Ltd (HCM) has started a trial comparing its cancer drug surufatinib with capecitabine chemotherapy in patients with biliary tract cancer. Its shares ended the day up 160p at £46.35.
