Ladbrokes sees spike on talk of takeover but it fades at the last
HOPES that Ladbrokes
Coral was the subject of a renewed takeover attempt from rival GVC caused shares in the bookie battling the tough high street environment and incoming regulatory headwinds to spike yesterday.
Ladbrokes jumped 2.3pc in intraday trading before quickly receding as traders realised that the two parties were at loggerheads over GVC’S valuation. The bid from the online gaming giant, which is thought to have been received over the summer, arrived as earnings at bookmakers including Ladbrokes come under threat from the Government’s triennial review of the sector.
An agreement of the bookie’s valuation is unlikely to be settled until the impact of the review on Ladbrokes has been determined.
Analysts believe the odds have increased that maximum stakes on fixed-odds betting terminals, will be slashed by regulators with Ladbrokes one of the most exposed London-listed stocks. With expectations quickly dwindling that the bookie would be the latest in the long string of GVC’S acquisitions, shares closed 0.2p lower at 119.8p. Elsewhere, Tesco and J
Sainsbury were pulled in different directions by Kantar Worldpanel’s latest report on the battle to cling on to market share among the Big Four supermarkets.
After outstripping its rivals’ sales, Dave Lewis-led Tesco jumped to the top of the blue-chip leaderboard, gaining 7.3p to 184.2p, while the biggest London-listed laggard in the figures, J Sainsbury, underperformed the wider market to finish just 0.1p higher at 237.7p.
The overall FTSE 100 snapped its losing streak to finish 62.86 points higher at 7,381.74, a 0.9pc rebound, as risk aversion faded on the markets. Tentative gains overnight in the US and Asia aided by the dollar’s advances on the pound and euro, saw European equities rally with the DAX and CAC
40 jumping 1.4pc and 0.9pc, respectively.
Meanwhile, the triple whammy of a scrapped dividend, chief executive departure and a full-year loss forecast sent doorstep lender Provident Financial sliding a colossal £11.56 to 589.5p, a 66pc tumble.
Star fund manager Neil Woodford was one of the biggest casualties and his day went from bad to worse as he saw two of his other picks, roadside rescuer AA and intellectual property group Allied Minds, slump 11.4p to 174.1p and 23.5p to 127.8p, respectively.
Finally, Shire rebounded 3.1pc following Monday’s 4pc fall on the news that chief financial officer Jeff Poulton will soon depart.
Flemming Ornskov, the pharma firm’s chief executive, shored up the ship by buying just over £300,000 worth of shares. Shire rose 112p to £37.25.