6th Jul 2026 07:50
(Alliance News) - ITV agrees to sell its Media & Entertainment business to Sky for GBP1.6 billion, easyJet edges closer to a Castlelake takeover, while Ocado extends Chief Executive Tim Steiner's tenure.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.1% at 10,668.63
GBP: lower at USD1.3336 (USD1.3351 at previous London equities close)
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BROKER RATINGS
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HSBC raises GSK to 'hold' (reduce) - price target 1,860 (1,500) pence
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JPMorgan raises Antofagasta to 'overweight' (neutral) - price target 4,500 (3,400) pence
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RBC cuts Close Brothers to 'sector perform' (outperform) - price target 470 (625) pence
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COMPANIES - FTSE 100
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Smiths Group says it will begin the second tranche of its GBP1.0 billion share buyback programme once the current GBP600 million tranche is completed. The London-based engineering for energy, security & defence, space & aerospace and general industrial sectors says the second tranche, worth up to GBP400 million, is expected to finish by the end of 2026 and will be managed by HSBC, with repurchased shares either cancelled or held in treasury to reduce the company's share capital.
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COMPANIES - FTSE 250
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easyJet says it has reached an "agreement in principle" with Castlelake on the key financial terms of a possible recommended takeover at GBP6.90 per share in cash, including a partial unlisted share alternative. The revised proposal values the airline at more than GBP5 billion, or USD6.7 billion.
The airline says its board would be minded to recommend an offer on those terms, subject to due diligence and agreement of definitive documentation. The UK Takeover Panel has extended the "put up or shut up" deadline, giving Castlelake until August 3 to announce a firm offer or walk away.
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ITV has agreed to sell its Media & Entertainment business to Sky, a wholly owned subsidiary of Comcast, for total consideration of up to GBP1.6 billion, comprising GBP1.2 billion in cash, Sky's Love Productions business valued at GBP200 million and up to GBP200 million in contingent cash linked to 2027 advertising performance. The transaction, expected to complete in the second half of 2027 subject to regulatory approvals, will transform ITV into a pure-play global content business centred on ITV Studios. ITV expects to return around GBP950 million, equivalent to 25 pence per share, to shareholders after completion. ITV Studios will acquire Love Productions, enter a long-term content supply agreement with ITV Media & Entertainment and Sky featuring a GBP2.1 billion minimum spend commitment over 2028 to 2032, and expects annual stranded costs of around GBP25 million, broadly offset by Love Productions' profit contribution. Following Comcast's planned separation, Sky and ITV Media & Entertainment are expected to become part of NBCUniversal upon completion of both transactions.
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Ocado Group says Chief Executive Officer & Founder Tim Steiner will remain in the role through the start of the 2028 financial year as part of its planned leadership transition. Following the appointment of a successor, Steiner will move into a founder role through 2029, providing strategic guidance and supporting the board, management team and customers while the company completes an orderly succession process. The update follows a shareholder backlash over the past few weeks after an attempt by Ocado's Chair Adam Warby to remove Steiner and find a replacement.
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Avon Technologies says its Avon Protection unit has secured a USD10.8 million order from an existing European Nato member under the Nato Support & Procurement Agency framework. The order covers FM50 air-purifying respirators, FM61EU filters and accessories to support the country's military modernisation programme, and the company says it further underpins expectations for financial 2027. CEO Jos Sclater says: "This new order highlights Avon Protection's long-standing position as a trusted supplier to Nato...Avon Protection supplies respiratory systems to 16 NATO nations under the NSPA framework, reflecting the increasing focus on modernising CBRN capability across the alliance. The NSPA framework provides a strong platform for repeatable demand as customers upgrade and standardise their equipment."
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OTHER COMPANIES
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Glenstone REIT increases its final cash offer for Alternative Income REIT to 71.4p per share from 70.0p, valuing Alternative Income REIT at about GBP57.5 million. Glenstone says the revised offer represents a 2.0% uplift to its previous bid and has published the offer document, with the offer initially open until September 4. Glenstone already holds about 24.8% of Alternative Income REIT and says it has commitments or indications of support covering a further 8.0%, taking total support to around 32.8%.
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Kosmos Energy says it remains on track to deliver its 2026 targets after reporting operational and financial performance in the first half. In Ghana, the J76 well has come online with initial production of around 20,000 barrels of oil per day, while the J77 well has been completed and is expected to start production imminently. The company also said net debt has fallen by more than USD400 million since the end of 2025 to around USD2.56 billion, and it remains on track to reduce net debt by around 20% year-on-year by the end of 2026.
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BATM Advanced Communications says it has secured a three-year contract extension worth around USD1.3 million with a long-standing US broadband and cable operator. Under the agreement, BATM will continue providing network support services based on its Carrier Ethernet hardware platforms. CEO Moti Nagar says: "We are delighted to have signed this new agreement with this key customer. It attests to their high satisfaction with, and confidence in, our services and products, and our ability to translate product sales into recurring revenue."
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By Eva Castanedo, Alliance News reporter
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