Thu, 23rd May 2019
Shares in Melrose Industries have fallen by 5.47 percent, making the company the poorest performer in the FTSE 100 today. The conglomerate is reconsidering its plans to sell a division of GKN, after they received lower than expected bids for the company.
Melrose had hoped to sell off GKN Powder Metallurgy, and analysts estimated that they could get £2 billion for the business. The initial bids, however, have been closer to £1.6 billion.
Melrose acquired GKN at a price of £8 billion earlier in the year, after a contentious battle for the company. They plan to keep many of the company’s businesses, but were looking to sell off Powder Metallurgy.
In other news, the oil services firm John Wood Group is the top performer in the index so far today, gaining 4.63 percent. The FTSE 100 is up 1.19%, to stand at 7,035.71 as the markets head into the afternoon.
The FTSE 250 also opened ahead, gaining 0.5 percent during the early hours of trading. The Sterling is up slightly against the dollar, but shed 0.2 percent against the Euro. All eyes are on parliament as Prime Minister Theresa May addresses MPs and is expected to tell them that the British Public want MPs to get on with a deal that will honor the referendum. May needs a working majority of 13 to get the deal passed, but just seven Tory rebels would be able to defeat it. If the deal does not pass, then it would create a problem which has no precedent in modern politics, and could cause chaos in the markets.