Weekend news and share tips

By ShareCast and Weekend City Press Review, 18 July 2011

■ Commodity trading house Glencore is adding to its metal assets in Peru with the purchase of a 70 per cent stake in Marcobre, which owns the Marcona Copper property and the Mina Justa exploration and development project, for $475m (£295m).

■ Global engineering giant GKN is looking to expand its Land Systems division after announcing that it is to acquire engineer Stromag for €164m (£146m).

■ Staffing business SThree reported a 52 per cent surge in pre-tax profit for the six months ended 29 May 2011 and has offered a special dividend of 11p.

■ Carpet and flooring retailer United Carpets rolled out a 13 per cent increase in annual pre-tax profit as total like-for-like sales fell by 1.4 per cent in the first 15 weeks of the new financial year.

■ Investment management business Man Group is to acquire the remaining exposure to the estates of the now-bankrupt US investment bank, Lehman Brothers, from funds managed by its subsidiary, GLG Partners, for $355m in cash.

■ Reinforced polymer products manufacturer Fenner said that third quarter trading has been in line as it recorded "significantly" higher revenues (at constant currency) than the same period the year before.

■ Financial services group WH Ireland swung into a half year profit as turnover increased nearly 30 per cent despite ongoing challenging market conditions.

■ Shares in energy storage and clean fuel company ITM Power jumped after it announced that FTSE 250-listed support services group Carillion is to use its technology for operating hydrogen-powered Ford Transit vehicles in a week-long trial later this month.

■ Shares in tantalum miner Noventa rose 7 per cent after it said it has negotiated an improved prices with its customer H C Starck, a supplier of ceramics and refractory metals.

■ Angel Biotechnology slumped 7 per cent after the biopharmaceutical contract manufacturer reported a net loss for the six months to 30 June as investors, who rejoiced the company's maiden profit last year, turned sour on the company.

■ Shares in technology firm Seeing Machines jumped 25 per cent on Monday after it trumpeted the arrival of the world's first 3D laptop that requires no special glasses for watching movies or playing games in 3D.

■ Debenhams , the FTSE 250 department store chain, has managed to refinance its credit facility at reduced interest rates.

■ Kazakhstan's Ministry of Oil and Gas has extended a contract allowing Roxi Petroleum , the Central Asian oil and gas company, to develop two wells in the country by two years to June 2013.

■ Rockhopper Exploration , the firm hunting for oil off the coast of the Falkland Islands, has drilled a third "appraisal well" on the so-called Sea Lion feature on the south Atlantic sea bed.

■ Shares in Coms , which provides internet telephony services, rocketed 60 per cent after it announced the launch of its new service for Apple iPad users.

■ Travel operator Thomas Cook Group has agreed to extend its credit facilities for one year, with a reduced interest rate.

FOR A SUMMARY OF LATEST MOVEMENTS IN EQUITY, BOND AND CURRENCY MARKETS, SEE OUR NEW MARKETS DATA SECTION!

■ Why not become a IC registered user - it's free, secure, takes just a few minutes - and gives you access to comprehensive company financial data, stock broker forecasts, our portfolio tool, share price and article alerts, and the stock screening tool. Register now!

■ Or access all areas with IC Advantage, our premium subscription product. Take a free, no-obligation trial to IC Advantage today.

NEWSPAPER SHARE TIPS (16-17 JULY 2011) courtesy of Weekend City Press Review:

■ : Martin Waller sees signs of a possible revival in M&A activity, with a potential focus on the healthcare, oil & gas, electronic and engineering sectors.

■ : David Budworth says buy St James's Place , 370p, although wait until the outcome of the US debt ceiling crisis is clear.

■ : Derek Pain refuses to be bearish about Booker , 74p, even though the retail outlook remains challenging.

■ : Ian Lyall urges small traders to be cautious when undertaking short-selling.

■ : James Ashton thinks Imperial Tobacco , £21.50, could get to £24 or more if concerns continue to ease over the cigarette price-war in Spain which led to a recent profit warning. ■ Investors in SVG Capital are becoming anxious over future strategy for the private equity group which has most of its assets tied up in Permira, so expect some thoughts on its future alongside the interims on 12 August.

■ : Garry White says buy Electrocomponents , 239p, as the recent share price fall looks overdone, especially given the support from the reliable 5.2 per cent yield.

■ Buy BHP Billiton , £23.40, as the Petrohawk Energy deal is a sensible move given that demand for gas will rise significantly over the next decade.

■ : Joanne Hart says buy Brewin Dolphin , 160p, which appears undervalued in comparison with its peers in private client investment management.

■ : Take some profits at Telecom Plus , tipped three years ago at 318p and now 678p, but keep the rest for further growth.

PRESS HEADLINES:courtesy of Weekend City Press Review:

Murdoch loses two top lieutenants

Rupert Murdoch continued with his efforts to end the phone-hacking row engulfing News Corporation by accepting the resignations of Dow Jones head Les Hinton and News International CEO Rebekah Wade. The moves put the pressure on News Corp chief operating officer Chase Cary to help see the Murdoch media empire survive. Meanwhile, the FT says in an editorial that statutory regulation of the print media would be a 'step too far'. []

Sky directors told: back or sack James Murdoch

The independent directors of BSkyB are to seek the views of the company's institutional investors before deciding whether to 'back or sack' chairman James Murdoch at a board meeting on 28 July. Murdoch's role at BSkyB has come under scrutiny following the News of the World hacking scandal and News Corp's decision to abandon its bid to take full control of BSkyB. []

Rescue bid for Southern Cross

Some investors in beleaguered Southern Cross are considering a plan to salvage part of the company to create a new business to operate its care homes. The plan would involve injecting up to £100m in fresh equity as well as bringing in new management. []

UK banks' £20bn euro risks

The UK's banks are expecting fresh market turbulence this week after it was revealed they hold €23bn of bonds from the eurozone's weaker economies, with Barclays said to be most exposed. Meanwhile, Spanish savings institution Bankia will set the final price on Monday for its planned €4bn share sale to repair its balance sheet. []

Cowdery eyes Lloyds

Clive Cowdery is considering a bid for the 630 branches being sold by Lloyds Banking Group via his Guernsey-based investment vehicle rather than the publicly-quoted Resolution. Cowdery's move will come as a surprise to rivals, including Virgin Money and buyout vehicle NBNK. []

Hayward eyes takeover of two Russian oil firms

Vallares , the oil & gas acquisition vehicle headed by Tony Hayward and Nat Rothschild is considering an £8bn deal for two Russian oil producers, Bashneft and Russneft. Both companies are currently part of Russian conglomerate AFK Sistema. []

Disgruntled 3i investors urge £700m buyback

Private equity firm 3i is coming under shareholder pressure to buyback up to £700m of its shares to stem the sliding share price. The institutional investors are also reportedly unhappy at the appointment of Simon Borrows as chief investment officer because of concerns he will use 3i's cash pile of almost £2bn for an 'acquisition spree'. []

Murdoch's future at BSkyB under review

The future of James Murdoch as BSkyB chairman will be discussed at a special board meeting on 28 July, it has emerged. The move comes as News Corporation is under pressure in the US to sell its entire UK newspaper assets because of the News of the World phone-hacking scandal, while a potential plan to acquire the rights to Formula One motor racing could now be off the Murdoch agenda. []

Obama demands 'shared sacrifice' in US debt deal

President Obama has called for a 'shared sacrifice' from Congress to reach agreement on a new debt-ceiling by the 2 August deadline to avoid a downgrade of US debt. Analysts believe that as the deadline approaches both sides could be forced into a deal. []

Interest rates likely to rise as economy returns to growth

The Ernst & Young Item Club believes that UK rates will start to rise in November to reflect falling inflation and an improved economic outlook. Item Club chief economist Peter Spencer thinks the markets 'will get a surprise' from the earlier-than-expected hike in rates. []

visible-status-Public story-url-CosSummary_08072011.xml