Fidessa buoyed by Ion’s vic­tory af­ter heated takeover bat­tle

The Daily Telegraph - - Markets - LUCY BUR­TON MAR­KET RE­PORT

The heated takeover bat­tle for City soft­ware firm

Fidessa came to a head yes­ter­day af­ter­noon af­ter Dublin-based Ion Investment beat off its two ri­vals with a £1.5bn bid.

The two sides agreed to a deal just hours be­fore a 5pm dead­line in which Ion and ri­val bid­der SS&C Tech­nolo­gies had to firm up their of­fers or walk away from the process.

The move will see Ion snap up Fidessa for £38.703 per share, trump­ing the bid Swiss soft­ware group Te­menos made for the com­pany ear­lier this year.

Ion’s of­fer is 8.5pc more than the amount Te­menos tabled and marks a pre­mium of al­most 50pc to Fidessa’s share price of £26.05 on Feb 16, just be­fore the talks with Te­menos were made pub­lic.

Share­hold­ers had been due to vote on the Te­menos deal next Fri­day. The deal with Ion has al­ready re­ceived the back­ing of 25.1pc of share­hold­ers, in­clud­ing in­vestor El­liott.

In­clud­ing a 79.7p div­i­dend, share­hold­ers will re­ceive £39.50 for each Fidessa share, the com­pa­nies said. Shares in Fidessa rose 55p to £40.55.

Hedge fund El­liott Ad­vi­sors also dis­closed yes­ter­day that it had bought a 1.5pc stake in

Ham­mer­son, days af­ter the shop­ping cen­tre owner an­nounced that it would walk away from a deal to buy ri­val Intu.

El­liott, which is known for its ac­tivist stance in com­pa­nies in which it in­vests, bought more than 12m Ham­mer­son shares, mak­ing it one of the com­pany’s top 20 share­hold­ers. Ham­mer­son’s stock closed 20.6p higher at 540p, mean­ing El­liott’s stake is worth around £65.6m.

Mean­while, Bar­clays, which has been trying to fend off a likely shake-up from New York-based cor­po­rate raider Ed­ward Bram­son, firmed 1.3p at 215.5p af­ter the City watch­dog said that the UK bank’s chief, Jes Sta­ley, can keep his job. The Fi­nan­cial Con­duct Au­thor­ity fined him for trying to un­mask a whistle­blower two years ago but cleared him of act­ing with “a lack of in­tegrity”, a more se­ri­ous charge that could have seen him lose his role. Fall­ers in­cluded Reckitt

Benckiser, whose shares dropped 161p to £56.25 af­ter the Nuro­fen and Harpic maker missed its first-quar­ter sales tar­gets.

“In com­mon with sev­eral other con­sumer sta­ples com­pa­nies to have re­ported so far, this year’s ear­lier Easter doesn’t seem to have helped Q1’s performance – or if it has, the un­der­ly­ing pic­ture is pretty grim,” an­a­lysts at RBC Cap­i­tal Mar­kets said.

Shire shares also fell, clos­ing down 153.5p at £32.22, even though its suitor Takeda came back with a fourth of­fer.

Euro­pean stock mar­kets were mixed yes­ter­day af­ter­noon as “traders re­main cau­tious about the global po­lit­i­cal out­look”, said David Mad­den of CMC Mar­kets. “The pos­si­bil­ity of a trade war be­tween the US and China is still bub­bling away in the back­ground, and the Rus­sian sanc­tions are still play­ing on traders’ minds. Deal­ers are likely to re­main ner­vous un­til there is some progress on geopo­lit­i­cal is­sues.”

The FTSE 100 in­dex closed up 0.54pc at 7,368 points, helped by the slide in ster­ling af­ter Bank of Eng­land Gover­nor Mark Car­ney di­min­ished the prospect of a rate hike next month.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.