Tech giant leaps after it reveals hope of £7bn deal
Micro Focus international stormed ahead after publishing the financial details of Hewlett Packard Enterprise, which it is about to buy.
The tech duo announced an acquisition deal back in September, whereby HPE would become a wholly owned subsidiary of Micro Focus in a £7bn reverse takeover (where a smaller company buys a larger one).
Micro Focus is in the process of raising £4.4bn, of which £2bn will be used to fund the acquisition. Yesterday it updated the financial results for HPE for the past three years, revealing that revenue at the firm had climbed 0.8pc yearon-year to £2.5bn while earnings for the last financial year were £594m. Micro shares gained 1.2pc, or 27p, to 2305p while the FTSE 100 finished down 0.55pc, or 40.23 points, at 7282.69.
One of the greatest fallers of the day was Next, which slipped after BNP Paribas downgraded the stock to ‘underperform’ from ‘neutral’. Analysts are concerned the high street retailer is losing market share. It lowered its price target to 3700p from 3900p.
The downgrade comes despite a recent post-results rally for Next, which saw analysts at Credit Suisse reiterate their ‘neutral’ rating last week. Next shares will begin trading ex- dividend from Thursday, ahead of a special 45p dividend due on May 2. Shares tumbled 3.6pc, or 154p, to 4166p.
Experian edged down after it announced an agreement to offload its email marketing business. The deal with private equity investor Vector Capital values the business at £320.6m. Vector will get a 75pc interest in the division and Experian will keep the rest. Shares fell 0.5pc, or 8p, to 1620p.
Ashtead was off after an acquisition announcement. The equipment rental firm said its US business – Sunbelt Rentals – had bought Pride Equipment Corporation for £224m, a rental equipment provider based in New York. Shares fell 0.7pc, or 11p, to 1642p. Shares in animal genetics firm
Genus leapt after a judge permanently lifted restrictions blocking the launch of its technology, which is used for sexing bull semen.
Genus Sexed Semen had been created as an alternative to technology already in use by rival Inguran and can skew which gender is produced through artificial insemination – important because dairy farmers prefer female calves.
In August a court placed restrictions on the launch after ruling Genus had breached confidentiality obligations with Inguran. But a jury concluded that Inguran had wilfully maintained monopoly power over the technology and awarded Genus a permanent injunction. It can now launch the product in the US and elsewhere later this year. Shares gained 1.6pc, or 27p, to 1752p.
Avocet Mining, which plunged last year after it had a gold shipment seized by angry ex-workers, fell again yesterday as it revealed its Inata mine continued to be affected after it originally suspended operations in October.
The business said it was in discussions with creditors to fund repairs and keep production going. Avocet has increased security after incidents in the area and is in talks with the Burkina Faso government about enhancing the military presence in the vicinity. It warned a deterioration of the situation could mean staff have to be evacuated for safety reasons.
Avocet also announced the appointment of Boudewijn Wentink as chief executive. Shares plunged 8.1pc, or 4.8p, to 53.8p.