BT's Bonds Fall on Takeover Bid Speculation
BT's bonds have fallen in value and on reports that private
equity firms are assessing the value of the U.K. telecom's
Openreach division, Tradeweb data show. "Bond investors should
remain very cautious with BT's bonds," says ING's Jan Frederik
Slijkerman, adding that leveraged buyouts typically involve higher
leverage and lower ratings. The spread between BT's five-year
credit default swaps (CDS)and those of Telecom Italia--which
received a takeover bid by U.S. private equity firm KKR earlier in
the month--looks too wide, he says. BT's CDS "should not trade at
Telecom Italia levels, because there is not a firm bid, but should
move wider to start pricing in the probability of a bid, so that it
closes a bit less than half of the spread gap."
Amigo Holdings Proposes New Scheme Involving Dilutive Equity
Raise, Lending Restart
Amigo Holdings PLC said Monday that it has proposed a scheme to
address the complaints liability which involves an equity raise
that is likely to result in material dilution for existing
Benchmark Holdings Raises GBP20.7 Mln Via Share Issue
Benchmark Holdings PLC said Monday that it has raised 20.7
million pounds ($27.6 million) via a share issue to fund its growth
Constellation Automotive Launches GBP322.9 Mln Takeover for
Constellation Automotive Holdings Ltd. on Monday launched a
322.9 million-pound ($430.7 million) takeover for Marshall Motor
Dev Clever Sees FY 2021 Earnings 'Materially Ahead' of
Dev Clever Holdings PLC said Monday that it expects to report
adjusted earnings before interest, taxes, depreciation and
amortization materially ahead of management expectations for the
year ended Oct. 31.
Benchmark Holdings Loss Narrowed in FY 2021; Sees FY 2022
Performance in Line With Views
Benchmark Holdings PLC on Monday reported a narrowed loss for
fiscal 2021, and said that performance in the current year is in
line with expectations.
Arcontech Sees Performance Slip Below Market Views; Expects
Arcontech Group PLC said Monday that its performance has fallen
below market expectations and that it expects an annualized hit to
its revenue of 300,000 pounds ($400,170).
Ince Sees Slightly Higher 1H Revenue
Ince Group PLC said Monday that it expects to report slightly
higher first-half revenue, and that its performance was in line
with its expectations.
Circle Property 1H Pretax Profit Rose, Rental Income Fell
Circle Property PLC said Monday that it swung to a pretax profit
for the first half of fiscal 2022 on the back of disposals and
greatly reduced valuation losses, though rental income fell.
Hummingbird Shares Dive as Gold Mine in Mali Is Shut Due to
Shares in Hummingbird Resources PLC fell in early trading Monday
after it warned that its Yanfolila gold mine in Mali has been taken
offline due to security issues, and that as a result, full-year
production will be below the bottom end of the guidance range.
Osirium Technologies Sees 2021 Bookings, Revenue Below Market
Osirium Technologies PLC said Monday that it expects bookings
and revenue for this year to be similar to last year and slightly
below current market expectations.
Webis Holdings to Report Swing to FY 2021 Pretax Profit
Webis Holdings PLC said Monday that it expects to report a swing
to pretax profit for fiscal 2021 on higher revenue.
Tatneft 3Q Profit Rose on Higher Production
Tatneft PJSC on Monday reported an improved profit for the third
quarter, as its oil-and-gas production increased from the previous
Genuit Group Appoints Joe Vorih as CEO From Early Next Year
Genuit Group PLC said Monday that it has appointed Joe Vorih as
its new chief executive officer from early next year, replacing
Martin Payne who said in May that he would will step down during
the first half of 2022.
Santander Names Mike Regnier UK CEO
Banco Santander SA said Monday that it has appointed Mike
Regnier as chief executive officer of its U.K. business.
Victoria PLC to Acquire Balta's UK Rugs, Carpet Units for EUR138
Victoria PLC said Monday that it has agreed to acquire
Belgium-based flooring company Balta Group's U.K. carpets and rugs
divisions for around 138 million euros ($156.2 million).
San Leon Energy Investee Agrees Loan to Increase Stake in
Nigerian Oil-And-Gas Block
San Leon Energy PLC said Monday that its investee Eroton
Exploration and Production Company Ltd. has signed a non-binding
term sheet for a prospective $750 million lending facility to buy
an additional 18% interest in the OML 18 oil-and-gas block in
International Personal Finance 3Q Profit Slips
International Personal Finance PLC said Monday that its pretax
profit slipped slightly in the third quarter of the year, but that
it swung to a profit in the year-to-date.
Simec Atlantis Energy Appoints Andrew Charters as CFO
Simec Atlantis Energy Ltd. said Monday that Andrew Charters has
been appointed to the board as an executive director and will
become the company's new chief financial officer.
Reliance Industries Denies BT Group Bid Intent
India's Reliance Industries Ltd. on Monday denied that it was
considering a bid for U.K. telecom group BT Group PLC.
Johnson Matthey Gains After Tata Battery-Talks Report
1156 GMT - Johnson Matthey is among the biggest FTSE 100 risers,
up 4% after a report claimed India's Tata Chemicals was in talks
with the catalytic-converter maker about buying its
battery-material business. The discussions began earlier this month
after Johnson Matthey announced plans to off-load the division,
Indian business-news publication Mint cited unidentified sources as
saying. No one from Johnson Matthey was available to comment. "The
price tag rumored to be attached to the potential bid, of between
$500 million-$700 million, is clearly regarded as attractive as it
would give the company more financial firepower to expand its
presence in hydrogen technologies," Hargreaves Lansdown analyst
Susannah Streeter says.
BT Surges After M&A, Takeover Reports
1008 GMT - BT Group shares top the FTSE 100 risers, up 8%
following reports about potential M&A and takeover interest in
the U.K. telecom. Private-equity firms and investment funds
including CVC, Apax, Brookfield and Macquarie are eyeing BT's
network arm, according to sources cited by the Mail on Sunday.
Meanwhile, another report claimed India's Reliance Industries Ltd.
could bid for the whole company. It comes after KKR & Co
approached Telecom Italia. French billionaire Patrick Drahi, the
founder of Altice, owns 12.1% of BT and Deutsche Telekom already
has a sizeable stake, AJ Bell says. "It will be interesting in this
context to see if this rumored move by Reliance flushes out other
parties," Bell investment director Russ Mould says.
BT Shares Rise After Reliance Industries Bid Report
0959 GMT - BT Group shares rise after a media report that Indian
conglomerate Reliance Industries may bid for control, AJ Bell says.
The report about the British telecommunications provider comes
after Reliance was recently outbid on a deal for control of a Dutch
unit of T-Mobile. French billionaire and Altice founder Patrik
Drahi has built up a position in BT and Deutsche Telekom also have
a sizeable stake, so a bidding war may be afoot, the brokerage
says. "Despite its substantial pension liabilities and debts and
iffy track record, it has a near-monopoly position in the U.K.'s
broadband network. And, for all its recent woes, BT has the
capacity to generate substantial cash flows," AJ Bell says. Shares
are up 8.8% at 167.55 pence.
Omicron Rattles Interest-Rate Expectations
0922 GMT - The discovery of the omicron Covid-19 mutation last
week has upended market pricing of future interest rates globally.
Fears that the new variant may derail the nascent economic recovery
as governments reimpose social restrictions and travel bans have
prompted investors to cut risk and piled back into safe assets,
including U.K. government bonds. The setback from the new virus
strain has increased the chance that Bank of England policymakers
may hold interest rates in December. "Market participants will now
have to be prepared for a substantially wider range of possible
outcomes," UniCredit analysts say. The BOE's policy decision is due
on Dec. 16. The 10-year gilt yield trades last at 0.846%, after
closing last Friday at 0.815%, the lowest level since Sept. 2021,
according to Tradeweb.
Equities Look More Attractive Than Bonds Despite Virus-Driven
Volatility, CS Says
0904 GMT - Markets will likely remain volatile until more is
known about the new variant of the coronavirus, but keeping
equities at a small overweight and bonds at an underweight is still
the right strategy, Michael Strobaek, global chief investment
officer at Credit Suisse, says. News of the spread of the variant
caused sharp risk-off moves on Friday, and there will likely be
further market reactions this week, he says. "Financial markets
will be inevitably affected by bouts of volatility into 2022...
When they affect risk assets and raise the equity risk premium, it
is an opportunity to take exposure to selected equities," he says.
Specific sectors favored by CS include logistics and
pharmaceuticals, which are considered more defensive by nature.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at email@example.com
(END) Dow Jones Newswires
November 29, 2021 07:43 ET (12:43 GMT)
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