IWG buoyed by takeover interest as FTSE 100 hits record high

OFFICE-SPACE provider

IWG stood out in an otherwise subdued trading session in London after a Canadian private equity consortium fired the starting gun on a potential bidding war.

IWG shares skyrocked 27pc to 254.4p after it confirmed that it had been approached by Canada’s Onex and Brookfield Asset Management, fuelling speculation that rival bidders could be interested in the firm behind Regus.

Its shares collapsed in October after the company admitted that its profits had been hit by a weaker London market and natural disasters disrupting business in the US.

The FTSE 250 firm has been left vulnerable by its shares tumbling as much as 48pc in 2017, bottoming out at a low of 190.9p this month.

Founder Mark Dixon is set for a bumper payday if a deal can be struck. The chief executive still holds a 25pc stake in and has been steadily loosening his grip on the business. His stake was worth just under £600m at the close of play yesterday.

Peel Hunt analyst Andrew Shepherd-barron said that much will depend on Mr Dixon’s attitude, and more bidders entering the fray could see the share price surge above 300p, which would value the company at over £2.7bn. The rebound helped the FTSE 250 to a second consecutive record close, ending up 158.97 points at 20,640.04.

Elsewhere, copper prices jumped to a three-and-ahalf-year high after China’s top producer, Jiangxi Copper Company, was ordered to halt production for at least a week as part of the Asian powerhouse’s efforts to curb pollution.

The squeeze on supply helped the base metal extend its winning streak to a ninth day, strengthening to above $7,200 per tonne to push up London’s mining giants on the FTSE 100.

Copper specialist

Antofagasta advanced 20.5p to 984.5p while heavyweights BHP Billiton and Glencore rose 22.5p to £14.86 and 7.8p to 383.2p, respectively, to help the blue chip index close 28.02 points higher at 7,620.68, a record high.

Oil giants Royal Dutch

Shell ‘B’ and BP nudged up 16p to £24.88 and 1.5p to 518.7p despite oil prices slipping back from the fresh two-year high they hit on Boxing Day. Brent crude rallied 2.7pc to $67.02 per barrel following an explosion at a pipeline in Libya, before pulling back to just above $66 per barrel.

Shell moved higher despite telling shareholders that it expects Donald Trump’s corporate tax cuts to impact its fourth quarter. Summit Therapeutics

gained 5p to 170p after acquiring antibiotics discovery firm Discuva for £10m. The deal will broaden the base of the company, Panmure Gordon analyst Dr Julie Simmonds argued.