FTSE 100 Falls as Industrial Stocks Drop; Oil -2-

0716 GMT - Vistry will takeover Countryside in a GBP1.25 billion deal with both businesses likely benefit from cooperation, Interactive Investor says. Since the peak in August 2021, Countryside investors have had a tough time with the stock shedding around 60%, after suffering from a slump in earnings and revenue brought about by its overly ambitious regional expansion plans, supply chain constraints, tough on-year comparables and one-off charges, Interactive Investor's head of investment Victoria Scholar says in a research note. "Vistry's share price has also struggled lately and with growing pressures from rising interest rates, build cost inflation and a slowing U.K. economy, both businesses may stand in better stead working as a team to take on the macroeconomic challenges," the investment platform says. ([e-mail])

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Vistry's Takeover of Countryside Will Likely Bring Big Advantages

0706 GMT - Vistry has agreed to take over Countryside Partnerships for an implied 249 pence a share in cash and stock, below a prior offer of 295 pence from Inclusive Capital but with the advantage of considerable management experience and cost savings, Jefferies says. The market will likely dislike the timing of the deal, given little clarity on the house building market in 2023 and Vistry likely needing to use new equity, Jefferies analysts say in a research note. However, the deal financials are attractive, Vistry management proved with the Galliford Try deal it can integrate assets well, and since acquisition Vistry Partnerships has achieved and exceeded targets, the U.S. bank says. Jefferies retains its buy rating and 1,209 pence price target on the stock. ([e-mail])

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Dollar Expected to Strengthen Against Euro, Sterling as Economic Recession Looms in Europe

0619 GMT - Capital Economics has revised up their forecast for the U.S. dollar against European currencies, senior markets economist Jonas Goltermann writes in a note. The economic-research firm now expects EUR/USD and GBP/USD rates to reach 0.90 and 1.05, respectively, next year as the economic slowdown and the terms of trade shock hitting the region take their toll, he says. The EUR/USD trades at 0.9888, down 0.6%, while GBP/USD trades at 1.1454, down 0.45%, according to Refinitiv. ([e-mail])

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(END) Dow Jones Newswires

09-05-22 0557ET