Portfolio Sales And Acquisition Rumours Fuel Markets

After a turbulent start to the week, the market settled a little on further encouraging results and comments by major companies.

Chris Bradshaw
shareprices.com - Tuesday, August 18, 2009

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British Land announced that the underlying value of its portfolio had reduced by just 3.7% in the quarter to the end of June compared with 9.2% in the first quarter.

British Land continues to be involved in a rumour that it is the takeover target of an Asian consortium of bidders. Chris Grigg, Chief Executive, was quite upbeat by saying that they had undrawn credit lines of £3bn and were looking more to adding to their portfolio rather than being taken over.

Banks recovered some of the early week losses with HSBC leading the way following an upgrade by Goldman Sachs who now rate the stock a 'buy' from 'neutral' and setting an £8.20 target price (currently £6.24). It also upgraded Standard Chartered to 'buy' with a target price of £16 (up from £14 and a current price of £13.82).

Mining stock bounced back with Rio Tinto gaining over 3% on news that it was to sell its Alcan Packaging business. Amcor, listed on the Frankfurt market, has made a binding offer for the business which is believed to be around $2bn. The cash strapped business should benefit from the additional income.

Repercussions of the Friends Provident takeover by acquisitive Resolution helped fuel speculation that Legal & General could be the next takeover target. Shares appreciated nearly 3% as speculation started to buoy traders. Shares in other insurance companies Prudential and Aviva also firmed.

 

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