London markets were rocked this morning by gloomy manufacturing data from China. China's troubles also weighed on the latest UK PMI reading, though the eurozone's manufacturing sector continued to display strong growth in August.
IC TIP UPDATES:
Shares in Entu (ENTU) plummeted 30 per cent after the home improvement group announced plans to close its struggling solar division and warned it could cut the dividend as full-year results look likely to fall below market expectations. Under review.
Rentokil’s (RTO) pest control business continues to grow. The support services firm agreed to pay $425m (£277m) for US business Steritech, just days after completing a deal for Chicago-based Anderson Pest Solutions. Rentokil said the deal strengthened its position as the number three pest control business in the U.S, a market worth around $7.5bn. We maintain our buy recommendation.
Amino Technologies’ (AMO) Booxmedia subsidiary has signed a new contract with Dutch utilities and digital services specialist DELTA. Under the deal, Booxmedia’s platform and products will be used to provide, install and maintain an end-to-end multiscreen cloud television service. Buy.
By buying Roc Oil for up to $20m, Faroe Petroleum (FPM) has increased its stake in two gas fields in the North Sea. Faroe will acquire the 12.5 per cent stake Roc Oil holds in the Blane field and a 12 per cent stake in the Enoch field. Buy.
KEY STORIES:
The fiery battle to acquire Bwin.Party (BPTY) took another twist after the online gambling group revealed it’s now evaluating a revised proposal from rival 888 Holdings, together with a bid from Sportingbet owner GVC Holdings.
Elsewhere, AGA Rangemaster (AGA) has received a rival takeover bid for Whirpool. The group, which makes brands including AGA and Rayburn range cookers and Fired Earth kitchen and bathroom products, had already agreed a £129m offer from US kitchen products company Middleby in July. Shares climbed 10 per cent on the news.
Shares in Innovation Group (TIG) were similarly buoyed by its own takeover story. The claims processing software specialist Innovation Group looks to be heading into private equity ownership, having agreed a £500m buyout from Carlyle.
Virgin Money’s (VM) finance chief Lee Rochford is stepping down less than a year after managing the challenger bank's IPO. Dave Dyer, currently strategy director and previously chief financial officer of Virgin Money, will provide cover until a replacement is found.
Punch Taverns' (PUB) drive to shut down unprofitable pubs looks to have been a smart one. In a trading update, the group revealed that average profits per pub were up about 4 per cent over the past year.
Automotive retailer Vertu Motors (VTU) reported a 14 per cent rise in group revenue as like-for-like sales grew 5 per cent. New car orders are on the up, while the group’s high-margin aftersales business continued to gain momentum.
AstraZeneca (AZN) has granted an exclusive license to Canada’s Valeant Pharmaceuticals to develop and commercialise its late-stage experimental psoriasis drug brodalumab. The arrangement excludes Japan and certain other Asian countries and follows the withdrawal of Amgen, amid concerns that suicidal thoughts were observed in some patients taking the medicine.
Satellite telecoms group Inmarsat (ISAT) has successfully launched its third global broadband satellite into orbit.
OTHER COMPANY NEWS:
Oil and gas development and production company EnQuest (ENQ) has agreed the sale and lease back of its newly constructed North Sea office in the centre of Aberdeen to Rockspring Hanover Property Unit Trust for £45m.
Digital Barriers (DGB) has bagged a £1m contract to supply TV1 vehicle-borne video surveillance to a major law enforcement agency in Asia.
Gas metering services group Energy Assets (EAS) reported steady progress in the first quarter, buoyed by the successful integration of recent acquisitions.
Real Good Food (RGD) netted a final £3.4m from Tereos Group for the sale of its sugar division, Napier Brown. The total consideration is now at £44m, prompting management to consider paying a dividend.
Markets reacted warmly to Progressive Digital Media’s (PRO) completed acquisition of Datamonitor Financial, Datamonitor Consumer, MarketLine and Verdict businesses from Informa. Shares rose 3 per cent off the news.
