Merlin casts wand over American theme parks
Whisperings of a possible bid for Us theme park Busch gardens led to choppy trading at Legoland owner Merlin
Entertainments yesterday.
several Us papers have reported that poole-based theme park operator Merlin has Busch gardens in its sights over the past week, and the rumour was once again highlighted by investec analysts yesterday.
The rumours were reportedly addressed directly in a conference call with analysts last week.
Finance boss Anne-Francoise nesmes is said to have claimed Merlin would be interested in looking at the theme park further if it was put up for sale by debtladen owner seaWorld.
Despite the reports sending seaWorld’s shares soaring, Merlin refused to comment. ‘This purchase would not be in the division i thought Merlin would look at, but it fits with their criteria of buying assets cheaply and renovating them,’ said Anna Barnfa- ther, an analyst at Liberum. Merlin shares rose by 0.2pc, or 0.8p, to 466.9p when markets closed.
After creeping up since the beginning of July as a result of rising silver prices, Hochschild Min
ing revealed a disastrous 49pc drop in profits to £14.2m over the first six months of the year.
it was hit by a jump in the yearon-year cost of producing silver from $10.9 per ounce to $12 an ounce as a result of declining rebates and rising inflation in Argentina, a key market.
Analysts at rBC downgraded the firm to ‘sector perform’ from ‘outperform’ despite claiming the firm still offers ‘strong long-term potential’. shares fell 18.2pc, or 57.6p, to 259.4p.
The FTSE 100 continued its winning streak, rising 0.67pc, or 49.18, points to 7433.03 as mining firms advanced on the back of a 2.5pc jump in the price of copper.
insurance firm Admiral saw its profits held back by a rise in personal injury payments in the first half, stemming from the government overhaul of the Ogden rate, used to calculate compensation.
The changes, estimated to have cost Admiral £150m, were mostly absorbed by reduced company profits last year, but the firm said it was continuing to pay the price.
it saw profit before tax grow by 2pc over the period to £193m while its dividend fell 11pc to 56p. shares fell 6pc, or 131p, to 2047p.
Ailing publisher Quarto Group languished at a five-year low after closing the book on a potential takeover by an unnamed bidder.
The publisher of titles such as ‘The Cannabis Cookbook’ rose earlier this month after revealing an undisclosed takeover bid. But yesterday, it said discussions and regulatory approvals for a formal offer would take longer than expected. shares fell 18.3pc, or 28.5p, to 127.5p. specialist drug firm Quantum
Pharma disclosed a takeover approach from pharmaceutical rival Clinigen Group after speculation lifted shares on Tuesday.
Clinigen, which makes, sells and distributes drugs, has offered to buy Quantum for an undisclosed amount through a combination of cash and shares.
Quantum rose 12.3pc, or 8p, to 73p on the news, while Clinigen advanced 0.8pc, or 8p, to 1028p.
Drug firm Vectura took a walloping in May after its generic asthma drug was delayed in the Us, but it was given breathing room after securing an exclusive lung cancer treatment deal, boosting shares 1.3pc, or 1.5p, to 114p.
Online marketplace CloudBuy floated higher after activity in its personal health budget division, phBChoices, increased. shares rose 4.8pc, or 0.12p, to 2.75p.