Takeover bid for Shire helps boost Footsie

Market report Emma Newlands

The FTSE 100 was boosted by Shire’s shares as the company received a revised takeover proposal from Takeda.

London’s blue-chip index closed the day up 26.53 points at 7,425.40.

Shire was the biggest riser on the FTSE 100, closing 3.42 per cent higher at 3,930p, after Japan’s Takeda tabled another offer for the pharmaceutical giant ahead of a deadline to reach a takeover deal.

Jasper Lawler, head of research at London Capital Group, said: “Shire looks tempted as it publicly considers the offer. We tend to think management has already shown its hand by selling the oncology unit, and the result will be another ‘thanks but no thanks’.”

Shell and BP rose by 1.24 per cent and 2.3 per cent respectively as oil prices rose above $75 per barrel during the day’s trading. However, towards the end of the session Brent crude was down to $74.74 per barrel.

The pound made gains, rising by 0.34 per cent against the dollar to $1.398, and against the euro was up 0.15 per cent to €1.143.

Anglo American closed down 28p to 1,747.6p after saying it is set to take a profit hit of up to $400 million (£287m) due to being forced to suspend production at its iron ore mine in Brazil because of a cracked pipe. The mining giant said it will take 90 days to allow it to undertake a full inspection.

The biggest risers on the FTSE 100 included Royal Mail, up 16.2p to 581.8p and Antofagasta, up 21.4p to 977.4p. The biggest fallers included Paddy Power, down 355p to 6,965p, and Mediclinic International, down 13p to 673.4p. Shares leapt after the broadband firm agreed to a £537.8 million takeover by a consortium of investors backed by banking giant Goldman Sachs. Shares in bookmakers fell sharply following reports that the government is to cut the maximum stake for fixedodds betting terminals to £2.