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WINNERS & LOSERS: Savannah Resources Jumps On Deal With Rio Tinto

Mon, 22nd Jun 2015 10:20

LONDON (Alliance News) - The following stocks are amongst the biggest risers and fallers within the main London indices midday Monday.
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FTSE 100 WINNERS
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Carnival, up 4.1% at 3,308 pence. Deutsche Bank upgrades Carnival to Buy from Hold, lifting its price target to 3,525p from 3,400p, with the bank saying it expects the second-quarter results from the cruiser operator to be above the upper end of the company's guidance. Analyst Richard Carter says he expects Carnival to demonstrate further booking and pricing recovery coupled with more operational momentum in its Carnival brand.

Sky, up 3.2%. Shares in the broadcaster are higher after the Murdoch family is reported to have rejected bids for its stake in Sky, stoking speculation that they intend to make a new attempt to take full control of the company, the Daily Telegraph reported on Saturday. The most recent bid is understood to have come from Vivendi, the French media conglomerate, while Vodafone Group also made an informal approach for the Murdoch's stake in Sky last year, the newspaper said.

Severn Trent, up 2.9% Canadian investment giant Borealis Infrastructure is considering a GBP5 billion approach for Severn Trent, two years after the FTSE 100 water company rejected an earlier takeover attempt, The Sunday Times reported. The newspaper, citing "sources close to the situation", said it is understood that the two sides opened talks last month, and discussions are at an early stage with no certainty a deal.

Capita, up 2.2%. The outsourcing company said that NHS England has named it as the preferred bidder to establish a single provider framework for administrative support functions for primary care across the UK. Capita said its selection includes an initial contract to manage and deliver services in England. The four-year sole provider framework has a maximum total value of GBP1 billion. Under the framework, the initial contract, which runs for seven to 10 years, for Capita to provide administrative support services for primary care in England is expected to be valued at up to about GBP400 million.
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FTSE 100 LOSERS
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Randgold Resources, down 1.8%, Fresnillo, down 0.7%. Precious metals miners are amongst the handful of FTSE 100 stocks which are trading lower Monday after the price of gold sunk below USD1,200 an ounce. Gold currently trades at USD1,195.35.
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FTSE 250 WINNERS
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Spire Healthcare Group, up 9.3%. The private healthcare provider said the major shareholder in South Africa-based private hospital group Mediclinic has acquired a 29.9% stake in the company for GBP432 million. The shareholder, Remgro, has acquired the stake in Spire at 360 pence per share. Spire shares closed at 320 pence on Friday. Spire said the intention is for Mediclinic to acquire the stake in Spire from Remgro in the "near future". Mediclinic and Remgro have confirmed they have no intention to acquiring the rest of Spire.

Bwin.Party Digital Entertainment, up 2.1%. The online gaming operator shares are higher after it said it has agreed to sell its entire interest in World Poker Tour to Ourgame International Holdings for USD35 million in cash. Bwin.party Digital Entertainment said it will continue to sponsor a number of World Poker Tour events and television shows in the US and Europe until the end of December 2016, and will have first refusal on any sponsorship opportunities that could become available until the end of December 2016.
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FTSE 250 LOSERS
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WS Atkins, down 1.4%. Panmure Gordon downgraded the project designer, engineer and management consultancy to Hold from Buy, saying the current share price does not reflect the near-term risks in its rail business.
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AIM ALL-SHARE WINNERS
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Savannah Resources, up 85%. The company said it has established a joint venture with mining giant Rio Tinto, which will result in both companies combining their heavy mineral sands projects in Mozambique. Under the deal, Savannah's Mutamba, Dongane and Jangamo prospects, together called the Jangamo project, will be combined with Rio Tinto's Chilubane project. Those prospects border one another and Savannah will operate the joint venture and have the ability to earn up to a 51% stake in the newly combined project by conducting the scoping, pre-feasibility and feasibility studies. Rio Tinto shares are up 0.3%.

Imaginatik, up 38%. The Consultancy and technology products company on Friday said it knows of no reason for the rise in its share price last week. However, it said it is aware that Quob Park Estates has been acquiring shares in the company. It added it has not received a notification of Quob's interest in its shares and has had no contact with the investment vehicle.

Lansdowne Oil & Gas, up 18%. The company said PSE Seven Heads and a subsidiary of PSE Kindsale Energy has entered into a contract with Diamond Offshore Drilling UK for the Ocean Guardian drilling rig to be used to drill a well at the Midleton Prospect in the North Celtic Sea. Kinsale Energy holds an 80% interest in the SEL 4/07 licence, with Lansdowne owning the remaining 20%. PSE Seven Heads is the operator of the licence.

ReNeuron Group, up 12%. The stem cell therapy company said it has extended its existing research collaboration with Australia-based Benitec Biopharma following positive results from early studies conducted by the pair.
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AIM ALL-SHARE LOSERS
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Armstrong Ventures, off 20%. The investment company said it is "hopeful" about the future, as it said it is operating against tough conditions, which it doesn't see improving in the near term. Chariman Haresh Kanabar said the general market conditions have been difficult for small AIM-listed companies focused on the resources and energy sectors.

Richland Resources, down 13%. The company said it will delay its first sapphire sale to the third quarter of 2015, news which follows a consultation with sightholders. Richland Resources, which is developing the Capricorn Sapphire project, said it will hold a product display and education session on its first recovered sapphires at the time of the Hong Kong Jewellery show from this coming Thursday to Sunday.

By Daniel Ruiz; danielruiz@alliancenews.com; and Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1

Copyright 2015 Alliance News Limited. All Rights Reserved.

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