Takeover chatter lifts Shire to top of FTSE 100 risers’ board
TAKEOVER whispers lifted long-standing target Shire to the top of the FTSE 100 risers’ board as the pharma firm’s shares rallied on hopes of a mega deal bringing shareholders an early Christmas present.
Several big pharma names from the US and Europe are rumoured to be circling the firm, with a price tag in excess of £50 per share mooted on the market.
Its shares slipped as low as 2.4pc at lunchtime when it revealed that its treatment for rare cases of Hunter syndrome had stumbled in a late-stage clinical trial, but the firm quickly recovered, being carried higher by City chatter that prompted deal-hungry investors to pile into the firm.
Shire had accepted a £32bn swoop by US rival Abbvie in 2014 before it was scuppered by a new US rule deterring tax inversion deals. The City rumour mill talked up a bid again earlier this year, and boss Flemming Ornskov argued that its promising pipeline of drugs had not been factored into the firm’s declining share price.
The firm’s shares drifted to their lowest level in 15 months in November, pulling back as much as 31pc from the 2017 peak. Shire’s shares closed 143p, or 3.8pc, higher at £39.20.
Elsewhere, Associated British Foods slumped as much as 3pc after RBC Capital Markets stoked concerns that its inflationproof Primark business is lagging far behind in the sector’s shift to online. Primark has been one of the sole survivors of this year’s sales slump on the high street, with its low prices protecting it from UK consumers’ incomes being squeezed by inflation.
While the rest of the sector attempts to keep pace with the explosive growth of online retailers Asos and Boohoo, high delivery costs impacting already low margins have delayed Primark’s expansion online.
Analyst Richard Chamberlain told clients that Primark still remains one of the stronger clothing retailers given its attractive prices, but its lack of brand recognition in the US will also hamper its expansion. The bearish note caused owner ABF to slide 48p to £28.14. One Media ip jumped a
further 1.1p to 7.6p on the back of former BBC boss Michael Grade and former Pinewood Studios chief executive Ivan Dunleavy taking a stake in the music and TV rights holder on Monday, bringing its total two-day share price climb to 79pc.
Cruise ship operator
Carnival gained 137p to £49.82 after its hurricane-battered fourth quarter beat expectations. It also told shareholders that advanced bookings for 2018 were ahead of the prior year and at higher prices.
No-frills airline easyjet flew 39p higher at £14.16 after extending its connections deal with Norwegian Air to Milan’s Malpensa airport.
The FTSE 100 flirted with a record close on a quieter market before quickly pulling back to just a 7.08-point rise at 7,544.09, as enthusiasm over Donald Trump’s tax reforms breakthrough began to wane ahead of a crucial vote in Congress.