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Morrisons bid battle could raise grocery sector valuations
Thursday 08 Jul 2021A bidding war for the UK’s fourth-largest grocery chain WM Morrison ( MRW ) has put the spotlight on the food retail sector and pushed up valuations of other companies in the space. Investors have taken the view that supermarkets and other food retail-related businesses should be worth more if...
Private equity may have a mixed reputation but returns have been good
Thursday 01 Jul 2021Private equity firms aren’t always viewed in the best light by investors. They are often considered to be tight when it comes to paying a fair price for a business, and then they load these companies with debt and deprive them of investment. However, it would be wrong to say all private equity...
Are UK companies being taken over on the cheap?
Thursday 01 Jul 2021On 29 June private equity firm Clayton, Dubilier & Rice increased its offer for pharmaceutical firm UDG Healthcare ( UDG ) by 5.5% to £10.80, valuing the company at £2.93 billion, including debts. The new higher price represents a premium of 28.3% to the pre-bid closing price on 11 May 2021...
Activist manager Crystal Amber targeted by another activist
Thursday 01 Jul 2021It’s not often you see an activist investor target another activist for poor performance but that’s what happening at Crystal Amber Fund ( CRS:AIM ). On 25 June Crystal Amber revealed that Saba Capital Management, its largest shareholder holding over 25% of its shares, intended to vote against the...
Was JD Sports’ Nike-driven jump justified?
Thursday 01 Jul 2021Shares in trainers-to-tracksuits seller JD Sports Fashion ( JD. ) rallied on a positive read-across following forecast-beating fourth quarter results from US sportswear giant Nike on 24 June. JD Sports has built its success on close ties with Nike and other powerhouse sportswear brands, so...
Housing market could lose steam as stamp duty holiday is tapered
Thursday 01 Jul 2021The Government’s holiday on stamp duty payable on house purchases is starting to be wound down, which could have a major impact on shares related to housebuilding, estate agency, DIY retail and conveyancing. From 1 July, the rate above which the tax becomes payable in England and Northern Ireland...
M&A fever in the supermarket sector after Morrisons bid
Thursday 24 Jun 2021Surprise news that supermarket group Wm Morrison ( MRW ) had been approached by US private equity firm Clayton, Dubilier & Rice with a £5.5 billion bid, sent the shares 30% higher on 21 June and has sparked a frenzy of speculation in the wider groceries sector. CDR, which was advised on its bid...
Earnings remain key to returns amid inflation and rates shock
Thursday 24 Jun 2021Global stock markets could be powered higher by strong corporate earnings in the months ahead, experts believe, despite ongoing expectations for tighter monetary policy measures potentially weighing on valuations through the rest of this year and into 2022. ‘We expect earnings to drive returns in...
Victorian Plumbing is AIM’s largest ever float as Wise plots direct listing
Thursday 24 Jun 2021Despite the likes of Marex Spectron, Tungsten West and Elcogen postponing proposed flotations, there are still signs of life in London’s new listings market. Payments app Wise is planning a so-called direct listing that could value the company at £9 billion, while online bathroom products retailer...
Markets unmoved by lockdown easing delay
Thursday 17 Jun 2021The delay in easing lockdown restrictions in England from 21 June to 19 July has caused consternation among many business sectors, but if the stock market’s reaction to the news is anything to go by, it doesn’t matter much to the UK’s listed companies. Both the FTSE 100 and more domestically-...