Rolls-Royce Slides as Takeover Talk Remains Unconfirmed

Aerospace and defense company Rolls-Royce's shares are trading sharply lower after Friday's surge amid speculation of a takeover from an unidentified suitor, but with nothing confirmed the stock is losing steam, Interactive Investor says. "However, they are still trading significantly above Thursday's close, suggesting there is still some M&A premium in the price with investors pinning their hopes on an approach," the investment platform says. Shares are down 9.3% at 99.95 pence. 


 
Companies News:

National Grid to Sell 60% Stake in UK Gas Transmission Network

National Grid PLC has agreed to sell a 60% stake in its U.K. gas-transmission business to an infrastructure investors consortium comprised of Macquarie Asset Management and British Columbia Investment Management Corp.

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Journeo 2021 Pretax Profit Rose on Higher Revenue

Journeo PLC said on Monday that 2021 pretax profit and revenue increased, and that the first quarter of this year has had good order intake and a significant pipeline of sales opportunities going beyond 2023.

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NatWest to Repurchase 4.91% Stake From UK Government for GBP1.2 Bln

NatWest Group PLC said Monday that it has agreed to buy 549.9 million of its shares from Her Majesty's Treasury for 1.21 billion pounds ($1.60 billion).

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Lookers to Sell And Lease Back Dealership in London for GBP28 Mln

Lookers PLC said on Monday that it has completed a sale and a leaseback of a dealership in Battersea, London, with Urban Logistics REIT PLC for 28 million pounds ($36.9 million).

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Brighton Pier 1H Pretax Profit, Revenue Jump on Strong Underlying Performance

Brighton Pier Group PLC said Monday that revenue and pretax profit rose for the first half of fiscal 2022, driven by underlying performance and the integration of Lightwater Valley.

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Barclays Expects $593 Mln Hit From Overselling Securities in US

Barclays PLC said it expects to record a 450 million-pound ($593.1 million) hit net of tax after over-issuing securities under its U.S. shelf registration exceeded the registered amount.

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Acacia Pharma Agrees to EUR94.7 Mln Takeover From Eagle Pharmaceuticals

Acacia Pharma Group PLC said Monday that it has agreed to a takeover offer from Eagle Pharmaceuticals Inc. that values the company at around 94.7 million euros ($104 million).

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Ted Baker Rejects Sycamore Partners Takeover Approaches

Ted Baker PLC said Monday that it has received two unsolicited nonbinding proposals from Sycamore Partners Management LP for a possible takeover of the clothing brand which it has rejected, saying they "significantly undervalued" the company.

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Xpediator Affirms 2021 Guidance for Adj Pretax Profit to Rise

Xpediator PLC said Monday that it continues to expect an adjusted pretax profit for 2021 well in excess of 8.5 million pounds ($11.2 million), up from GBP7.2 million in 2020.

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Ten Lifestyle Gets GBP1.5 Mln Loan; Says Business Is in Line With Views

Ten Lifestyle Group PLC said Monday that it has agreed to take a 1.5 million-pound ($2 million) loan from the wife of Nonexecutive Chairman Bruce Weatherill and that it continues to perform in line with the board's expectations.

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RTC Group 2021 Pretax Profit Fell, 1H Profitability Seen Hurt by Contract Requirements

RTC Group PLC said on Monday that 2021 pretax profit fell after booking higher costs, and that it expects the changeover expense and disruption stemming from its Network Rail contract in the U.K. to continue into the current year and have a material effect on first-half profitability. 


 
Market Talk:

Euro to Rise Versus Pound But Ukraine War Will Limit Gains, Says BofA

1015 GMT - The euro is likely to rise versus the pound but less than previously thought due to the Ukraine war, Bank of America says as it cuts its year-end EUR/GBP forecast to 0.85 from 0.89 previously. The market continues to attach a high risk premium to holding the euro as it believes the European economy will be hardest hit by the Russia-Ukraine conflict, but BofA analysts are skeptical when it comes to the pound. "Ultimately...we think the U.K. [fiscal and monetary] policy mix, deteriorating fundamentals and increased pressures in current account financing will all be factors that weigh on GBP." EUR/GBP last trades at 0.8355.

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Ten Lifestyle's GBP1.5 Mln Loan Seen Making It More Agile

0958 GMT - Ten Lifestyle Group taking out a GBP1.5 million loan shows that the business is being cautious during its seasonally negative working capital period, but it should make it more agile, Peel Hunt says. Having more cash centrally allows the travel-service platform more agility when deploying funds to where they are needed, the U.K. brokerage says. In the worst case scenario the loan will incur total financing costs of GBP165,000 over its 15-month term, it says. Peel Hunt has a buy rating on the stock with a target price of 182 pence.

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Ted Baker Drops After Rejecting Takeover Bids

0933 GMT - Shares in Ted Baker fall 2.8% after the fashion brand rejected two unsolicited non-binding proposals from Sycamore Partners Management for a possible takeover, saying they "significantly undervalued" the company. While Ted Baker has had a tough few years and still faces hurdles, its latest trading update shows increased sales, improved margins, a small year-end net cash position and encouraging management comments, AJ Bell says. "The retailer has been through a prolonged difficult period and was just starting to see the first fruits of its recovery strategy," Bell says. "Selling out now would mean letting someone else come in and steal all the credit for the turnaround plan."

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Mining Cycle Won't Die Soon, Investors Should Eye Long Term, Jefferies Says

0925 GMT - Although a sharp slowdown in global growth would be a temporary headwind for mining equities, the commodity cycle won't die until supply growth comes, and that is years away, Jefferies says. The U.S. bank expects the mining sector to continue to materially outperform the market, mainly driven by an expansion of what are currently very low price-to-earnings ratios. "Our base case assumption is that commodity markets will enter a demand soft patch in the near future, but we believe the risk to this is increasingly to the upside. The best idea, in our view, is to stay long and ignore the volatility, if possible," Jefferies says.

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Auto Trader's Autorama Acquisition Makes Sense But Challenges Remain

0919 GMT - Auto Trader's decision to buy Autorama--an online aggregator of car leasing deals--makes sense as the online marketplace for cars looks at new ways to monetize new car transactions, UBS says. Leasing is likely to gain share, but a lack of new car supply remains a challenge for all retailers, with automakers likely to prioritize direct sales and franchise dealers, UBS says. "While we expect Ebtda losses to be reduced given deal synergies, we expect Autorama trading to be challenged in the next 12 months," the Swiss bank says. UBS rates the stock neutral, and has a 710 pence target price. Shares are down 0.6% at 641.20 pence.

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Mining Capex Remains at Recessionary Levels Despite High Commodity Prices

0833 GMT - Global mining capital expenditure is at prior recessionary levels when adjusted for the size of the industry today, and remains far below the peak levels of 2011-2013 despite record-high prices for most mined commodities and very strong balance sheets, Jefferies says. The U.S. bank attributes this to geopolitical risks, a rising cost of capital, ESG constraints, a lack of quality projects, the recognition that supply growth kills prices, and pressure from shareholders to use cash for capital returns. "Even when the industry does rampup investment in growth, the long lead time to bring capacity online will be an issue, and market deficits will likely persist for years as a result," Jefferies says.


Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

03-28-22 0649ET