Investors get on board after talk of spin-off for G4S’S cash vans

CITY speculation that G4S could benefit from a break-up prompted investors to push the security outsourcer towards the top of the FTSE 100 leaderboard.

Exane BNP Paribas hypothesised that spinning off the contractor’s cash solutions business, which transfers cash securely in vans for businesses, could generate more than £2.2bn for the outsourcer.

Its analysts argued that the case for splitting up the company was bolstered by a lack of synergies within its current structure and Spanish rival Prosegur successfully spinning off its cash-in-transit business last year. With trading robust at cash handling rivals Loomis and Brink’s, G4S’S unit would also be a tempting takeover target, Exane argued in an upgrade to “outperform”.

With a flurry of deals sweeping the City in recent weeks, the break-up talk swirling around G4S lifted it 9.9p to 270.4p, a 3.8pc jump.

Elsewhere, broker Bernstein poured cold water on Severn Trent and United Utilities shares, warning that a recent spike in regulation could scupper any deal-making in the sector.

Bernstein downgraded Severn Trent to “underperform” and advised investors to avoid the UK water utilities sector, arguing that Ofwat’s clampdown on dividends had significantly reduced the likelihood of any swoops on the firms. Regulation fears sent Severn Trent shares sliding 44p to £19.76 to the bottom of the FTSE 100, while United Utilities dropped 14.8p to 766.4p.

Healthcare shares across the world declined as investors braced for Donald Trump’s speech on tackling “out of control” drug prices.

Media reports in the US indicated that the president will target big-brand drug makers for ramping up prices and attempting to fend off competition by delaying lower-cost copycat drugs reaching the market. FTSE 100 pharma giant

Glaxosmithkline slipped 10.6p to £14.66 while

Astrazeneca nudged up 27p to £52.79 despite suffering a setback in a drugs trial for a lung disease treatment.

Royal Mail shares climbed to an all-time high ahead of boss Moya Greene’s final full-year figures leading the parcel deliverer next week. After finally resolving its bitter pensions dispute with trade unions and delivering promising revenue growth in its European parcels business, Royal Mail shares have surged 38pc in 2018 and climbed a further 19.6p to 631p yesterday. Randgold Resources

regained 216p to £58.90, clawing back ground lost from Thursday’s production slump, while ITV extended its winning streak following a jump in online advertising sales, advancing 11.7p to 172p.

Serica Energy fought back from a 16pc intraday slump to finish just 1p lower at 62p as investors continued to dump the stock after flagging the possible impact of Mr Trump’s sanctions on Iran

The FTSE 100 inched closer to its record high to finish another frantic week on the front foot, nudging up 23.58 points to 7,724.55. On currency markets, the

pound rallied as the dust settled on the Bank of England’s decision to hold rates at 0.5pc.

After sinking on “super Thursday”, a 0.4pc rebound to 1.3550 against the dollar prevented it from recording its worst losing streak against the greenback since 2015.