Square Mile dives into Merlin on talk that it’s casting a spell for Seaworld
THE City thought it was worth taking a ride with theme parks giant Merlin Entertainments today, wooed by the prospect of the Legoland and Alton Towers owner splashing into a SeaWorld deal.
The firm is said to have approached marine parks operator SeaWorld Entertainment about a bid for part of the business, which some think could be the Busch Gardens theme parks located in Virginia and Florida. Merlin, which today declined to comment, jumped 7.76p, or almost 2%, to 456.16p.
Other major risers on the FTSE 100 included Britain’s biggest gas and electricity suppliers, which have gone from cold to hot. After suffering yesterday when Theresa May outlined plans to go ahead with a cap on energy prices, investor concerns seemed to have lessened today and they returned to energy stocks. Big Six energy supplier SSE saw its shares rise 23.19p to 1,390.19p, and shares in British Gas-owner Centrica were up 1.6p to 180.9p.
The overall blue-chip index rose 12.49 points to 7,480.07. AJ Bell invest- ment director Russ Mould said the rise was partly down to US markets reaching new record levels overnight “as the Wall Street bubble continued”.
The FTSE 250 lost 29.49 points to 19,999.93, with fallers including roadside assistance group AA, whose shares fell 1p to 158.1p on the same day that figures showed the new-car market has declined for a sixth consecutive month.
Elsewhere, the bar room brawl for Revolution Bars continued as nightclubs operator Deltic Group made another attempt to gatecrash pub chain Stonegate’s £101.5 million takeover of the cocktails specialist, which is a firm favourite with students.
After having initial merger approaches rebuffed in August, Deltic has outlined more detailed plans to create a pubs and clubs giant with annual sales of more than £270 million.
It has proposed an all-share merger that would see Revolution Bars own 65% of the combined business and Deltic the remaining 35%. It also said it has not ruled out a cash offer for the 68-venues chain ahead of an October 10 deadline.
The update comes two months after Slug & Lettuce owner Stonegate said it had reached an agreement to buy Revolution with an offer of 203p per share.
The City appeared unimpressed by Deltic’s bid to derail the Stonegate deal, and shares in Revolution Bars fell 3.28p, or 1.56%, to 207.22p.
On AIM, investors tuned into music start-up EVR Holdings. The firm revealed that Roc Nation, founded by rapper Jay-Z, has signed two licensing agreements with one of its subsidiaries that creates virtual reality music content. Roc Nation’s client list includes singers Rihanna and Shakira.
Shares in EVR gained 0.03p to 7.9p. @es_jobourke