Smith & Nephew gets kick-start on deal making talk

SMITH & NEPHEW’S new deal-hungry boss restored investor confidence in the struggling artificial knee maker after opening the door to a spending spree to rescue its ailing growth.

After years of underperforming its rivals, the looming presence of feared activist investor Elliott Advisors prompted a management shake-up at the FTSE 100 firm, bringing in new chief executive Namal Nawana, who has a reputation for deal making.

While he said the focus will be on improving growth in its existing business, he admitted yesterday that “there’s plenty of opportunity” to strike deals by using the firm’s “very strong balance sheet”.

After speculation that he would use his first results as an opportunity to “reset expectations”, in line trading “will come as a relief ” to investors, Berenberg’s Tom Jones told clients.

Smith & Nephew rallied 40p to £13.61 while the

FTSE 100 struggled to keep up with the surge on European markets, edging up just 4.91 points to 7,663.17. Elsewhere, a 72pc jump in Johnston Press shares forced the embattled newspaper publisher to update investors on its refinancing efforts.

Despite no progress being made, it closed 2.6p higher at 6.1p but still languishing at a 47pc loss in 2018.

Chattering market participants speculated that the illiquid stock was moved by retail investors snapping up shares amid hopes that top shareholder, Norwegian entrepreneur Christen Ager-hanssen, will help secure its future.

As shares in shopping centre owner Intu

Properties nosedived, former takeover suitor

Hammerson also tumbled a further 28.2p to 500.8p after Morgan Stanley questioned whether its £300m share buyback and disposals would be enough to win over investors.

ITV plunged 6.7p to 165.3p after Barclays fretted over whether the strategy revamp would be enough to offset the “significant” headwinds hitting free-toair broadcasters. Fast fashion giant Asos inched down 40p to £61.70 on an Investec downgrade to “sell”, arguing the launch of a new lower-priced range would cannibalise its existing offering.