Conclusion to GKN tussle elevates FTSE
Market report Emma Newlands
Shares in GKN were sent soaring after Melrose emerged victorious in a closely fought battle to seize control of the engineering giant.
The FTSE 100 Index lifted 11.87 points to 7,056.61, with GKN climbing 9 per cent to 463p after shareholders backed Melrose’s £8.1 billion bid with a 52.43 per cent share of the vote.
On the currency markets, sterling drifted 0.4 per cent lower versus the US dollar at $1.40, as figures from the Office for National Statistics (ONS) confirmed economic growth slowed to 0.4 per cent in the final three months of last year.
The ONS revised up growth for the year as a whole to 1.8 per cent from the previous estimate of 1.7 per cent, but this was still the lowest since 2012.
In UK stocks, Mediclinic marched higher after investors cheered the announcement of Ronnie Van der Merwe as its new chief executive. The group closed up 29.2p to 601p, after confirming the 55-year-old will succeed Danie Meintjes on 1 June.
Banking giant Barclays pushed ahead 0.5p to 206.5p after reaching a $2 billion (£1.4bn) settlement with the US department of justice that followed a three-year investigation into allegations that the lender caused billions of dollars of losses to investors regarding residential mortgage-backed securities.
The biggest risers on the FTSE 100 Index included International Consolidated Airlines Group, up 17.6p to 614.6p, and Fresnillo, up 36p to 1,268.5p. The biggest fallers included Prudential, down 60.5p to 1,778.5p, and Intercontinental Hotels Group ,down76p to 4,268p. The supermarket major found favour among investors after some positive comments by analysts at Bernstein and its recent results. Fellow retail sector stock Mothercare was heading in the other direction as it continues with its critical refinancing discussions.