BT surges as bidder looms for sports arm
SHARES in BT climbed following reports that the telecoms giant is in talks with sports streaming firm Dazn to sell its BT Sports arm.
Dazn, a start-up backed by Len Blavatnik, the UK’s richest man, is the front-runner to take over the business in a deal that could be announced within weeks and could attract a price tag of hundreds of millions of pounds, according to the Financial Times.
A deal will give Dazn broadcast rights to a range of sports content including English Premier League football as well as rugby union and some cricket matches.
BT originally put its BT Sport arm up for sale in April as part of boss Philip Jansen’s plan to focus on its broadband and mobile networks.
The tie-up will be a coup for a firm aiming to become the ‘Netflix of sport’. It would also cement its status as a challenger to Sky, which it has outbid for broadcasting rights for Italy’s top football league this year. BT shares jumped 2.7pc, or 4.2p, to 159.5p.
Meanwhile, hedge fund Pershing Square was among the FTSE 100’s biggest risers after one of its largest holdings, Universal Music Group, soared on its debut on the Amsterdam stock exchange.
Shares in Universal, the world’s biggest record label which owns music catalogues of artists including The Beatles and Bob Dylan, climbed to €25.10, 35.6pc higher than their reference price of €18.50.
Pershing, run by billionaire activist investor Bill Ackman, surged 5pc, or 130p, to 2725p.
Ackman previously attempted to invest in Universal in July through a different vehicle but was blocked by US regulators. However, the gains for Pershing will be seen as a vindication of his pursuit.
The FTSE 100 bounced up 1.1pc, or 77.07 points, to 6980.98. The FTSE 250, meanwhile, was up 0.9pc, or 209.67 points, to 23,611.39. Markets appeared to have been lifted by bargain hunting activity following Monday’s sell-off.
Oil giant Shell rose 3.8pc, or 54p, to 1484.60p after signing a £6.9bn deal to sell its business in the Permian basin, a major oil and gas area in the south-western US, to American natural gas group Conoco Phillips.
Cash from the sale will be used to fund around £5.1bn in ‘additional shareholder distributions’, with the transaction expected to close in the fourth quarter.
Funeral director Dignity said the average amount spent on its funerals had increased in the first half of 2021 as lockdown restrictions eased.
But it fell 2.8pc, or 21p, to 722p after it said the number of deaths had declined 8pc to 340,000 in the six months to June 25.
Group was also on the slide, dropping by 2.2pc, or 33p, to 1453p as it said it was cautious about the outlook for its company catering arm given what it said was ‘continued uncertainty’ over the pace of offices reopening in its major markets.
Online pension provider Pension Bee was little moved at 147p as a 109pc rise in revenue to £5.4m in the first half of 2021 was offset by widening losses, which more than doubled to £12.8m from £5.2m in the same period a year ago.
Pension Bee, which allows consumers to transfer, merge and manage pensions, raised £55m at its initial public offering (IPO) amid expectations that it will be on ‘a path to profitability’ by the end of 2023.
Elsewhere, computer chip maker Alphawave rocketed 19.4pc, or 66.4p, to 408p after upping its full-year guidance citing ‘strong global demand’.
The firm, which made its debut on the London market in May, also reported that revenues in the six months to the end of June had jumped 140pc to £20.2m.