* FTSE 100 ends down 1.7 pct but mid caps down 0.6 pct
* Micro Focus plummets after CEO quits, revenue outlook cut
* Barclays rises after activist acquires voting rights
* Hammerson jumps after
By Danilo Masoni and Kit Rees
Confirmation that
"The implications for
"While investors should view this as a positive developmentfor domestically exposed
Big international FTSE stocks like British American Tobacco, BP, HSBC and Diageo were allsharply lower, down between 1.6 and 3.7 percent, while amongcompanies that benefit from a strong pound, gambling companyWilliam Hill rose 4.2 percent and real estate firm LandSecurities added 3.3 percent.
Elsewhere, shares in software company Micro Focusplummeted 46.3 percent, its biggest ever one-day loss, after itsCEO quit and it cut its revenue outlook.
Micro Focus has had problems stemming from assets it boughtfrom Hewlett Packard Enterprise, on which it spent
"Large acquisitions are inherently risky as they come withintegration challenges. Micro Focus appears to haveunderestimated these challenges and is now suffering," RussMould, investment director at AJ Bell, said.
Micro Focus fell around 17 percent back in January after adisappointing set of results and outlook.
Barclays jumped 3.6 percent after activist investorSherborne acquired 5 percent of voting rights in thebank.
Investors have been putting pressure on Barclays to become aprofitable investment banking force. It has struggled due to lowvolatility and tougher regulations on capital requirements.
Mid-cap company Hammerson was a stand-out gainer,up 24 percent. Shares in the
Hammerson rejected Klepierre's takeover bid, valued at 4.88billion pounds (
Although the pound rose on Monday and has recovered fromlows hit in the aftermath of the Brexit referendum in June 2016,it still remains below the levels it was before the vote.
Its depreciation has made British targets more affordable tooverseas buyers, as highlighted by Klepierre's approach forHammerson.
"It's pretty clear that large
"There's a bit of undervaluation creeping in because ofpotential threats around Brexit, real or imagined, and that canmake companies quite attractive, and then many are willingsellers because of the same reason," Odeluga added, pointing toCME's bid for NEX Group last week.
(Reporting by Kit Rees; Editing by Angus MacSwan)