FTSE 100 Closed Slightly Higher With Truss Named -2-

1024 GMT - Vistry's recommended combination with Countryside Partnerships--in effect, a GBP1.25 billion takeover of the latter--is a smart move, Davy Research says. The house builders' combination, expected to complete by the end of 1Q 2023, makes strategic sense, with two of the largest partnership models joining to create a business of significant scale with very attractive returns, Davy analyst Colin Sheridan says in a note. "The combination of Vistry Partnerships and Countryside Partnerships will create a partnerships business with revenues of around GBP2.5 billion in 2022, but in an area where Vistry had significant growth ambitions," the Irish research firm says. Davy retains its outperform rating on Vistry's stock. Vistry shares are down 0.3% at 739.0 pence and Countryside shares are up 5.1% at 239.8 pence. ([e-mail])

---

Aston Martin Lagonda Shares Splutter After Rights Issue

1001 GMT - Aston Martin Lagonda Global Holdings drops 13% to 420 pence after the sports-car maker launched a GBP575 million rights issue to help it cut debt and support future growth. The four-for-one offer of shares at 103 pence each represents a 78.5% discount to last Friday's closing price, AJ Bell says. "While it says the new money should help it achieve strategic goals, this might simply be Aston Martin finding another piece of frayed rope to keep it afloat," Bell's Investment Director Russ Mould writes. "The key question is for how long the rope will stay intact before the company needs help again. One has to wonder if it would be better off as a privately-owned company," he says. ([e-mail])

---

Aston Martin Lagonda Global Might Be Better off Private After Stock Market Flop

0941 GMT - Aston Martin Lagonda Global Holdings might be better off as a private company as it has been a flop since joining the stock market, AJ Bell investment director Russ Mould says. "For what's meant to be a premium brand, Aston Martin is behaving like a desperate start-up company, going cap in hand once again to shareholders asking for more money. Its offering of shares at a 78.5% discount to last Friday's closing price shows how desperate it is to secure new funds," Mould says. The key question for the U.K. luxury-car maker is for how long the funds will last until it needs help again. Shares trade down 13% at 416.70 pence. ([e-mail])

---

Melrose Industries Faces European Energy Risks in 2H

0938 GMT - Melrose Industries faces risks from Europe's energy woes, Citigroup says ahead of the industrial-turnaround specialist's first-half results Sept. 8. Citi expects more of a second-half weighting to profits than normal this year, led by lower aerospace build rates earlier in the year and automotive-production disruption in 2Q weighing on 1H profits. "The key risks to the 2H recovery call, however, will be rising fears across the sector on potential energy shortage impacts in Europe--IHS's recently published automotive downside scenario points to 2% auto-volume downside risk in 2022 and 7% in 2023 if a range of risks materialize, although dollar strength can provide some offset," Citi analysts say in a note. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

09-05-22 1206ET