(Alliance News) - Stock prices in London are seen opening marginally higher on Tuesday as investors monitor the spread of the Indian, or Delta, Covid-19 variant across the globe.
In early company news, UDG Healthcare said it reached an agreement with Clayton Dubilier & Rice after the US private equity firm returned to the table with an improved takeover offer. Housebuilder Barratt Developments poached its new finance head from Countryside Properties. Marine services provider James Fisher outlined a new strategy.
IG futures indicate the FTSE 100 index is to open 3.93 points higher at 7,076.90. The blue-chip index closed down 63.10 points, or 0.9%, at 7,072.97 on Monday.
UDG Healthcare said it has agreed final terms with Clayton Dubilier & Rice over a takeover offer that values the Dublin-based private healthcare provider at GBP2.76 billion.
Under the deal terms, UDG shareholders will be entitled to receive 1,080 pence for each share, up 57% from the previous offer of 1,023p per share.
UDG said CD&R has the support of 11% of shareholders, including Allianz Global Investors and Kabouter Management, for the final offer. Other institutional shareholders of UDG also have indicated their willingness to vote in favour of the deal.
As such, UDG directors unanimously recommend the acquisition to shareholders, the company said.
Barratt Developments said it has appointed Mike Scott as an executive director and chief financial officer. The date he will join Barratt is currently being finalised and will be announced in due course.
Scott, who is currently CFO of FTSE 250-listed peer Countryside Properties, has extensive experience in the housebuilding sector, having joined Countryside as financial controller in 2014, Barratt said.
Countryside Properties noted the announcement, saying it was commencing a search for Scott's successor and will confirm his leaving date in due course.
James Fisher said it remains on track for improved underlying operating profit in 2021, with profit to be more weighted to the second half of the year than in the past.
James Fisher also unveiled a new strategy to "refocus" on niche sectors in its chosen markets, where it has leading position and where barriers to entry are high. At the same time, the company will be "addressing underperforming assets and businesses".
The plan will encompass a focus on maintaining attractive and growing segments in marine, energy and defence markets and reinforcing internal processes to support organic growth, James Fisher said.
As part of the strategy, James Fisher has set a medium-term target of underlying operating profit margin above 10% and return on capital employed of above 15%.
"We have reset our strategy to reinforce our strengths and realise our full potential. This strategy leverages the group's fundamental strengths in marine services, with a renewed focus on driving better future performance and returns for all stakeholders. Our goal is to improve the quality of our business by focusing on structurally growing markets, improving operating margins and returns, and sustainably delivering enhanced value for all our stakeholders," explained Chief Executive Officer Eoghan O'Lionaird.
In Asia, the Japanese Nikkei 225 index closed down 0.8% on Tuesday. In China, the Shanghai Composite was down 0.9%, while the Hang Seng index in Hong Kong was down 1.0%. The S&P/ASX 200 in Sydney ended 0.1% lower.
With the more contagious Delta virus variant sending infection rates higher, several governments around the world are being forced to act to prevent another deadly wave of the disease.
"Today's European open looks set for a tepid start after the losses of yesterday, after Asia markets also lost ground as concerns grow that the race between the vaccine and the virus is being lost," said CMC Markets analyst Michael Hewson.
About 10 million Australians have been ordered into lockdown as Covid-19 spreads across the country, after Brisbane on Tuesday became the fourth major city to issue stay-at-home orders. The three-day snap lockdown for Brisbane, starting on Tuesday evening, comes on top of similar orders imposed in Sydney, Perth and Darwin residents in recent days.
The disease has led to similar measures in South Africa, while Russia, parts of Asia, Europe and South America also have witnessed worrying spikes.
Conversely, UK Prime Minister Boris Johnson and his new Health secretary, Sajid Javid, have confirmed their intention for July 19 to mark the end of England's lockdown restrictions.
Javid resisted pressure from Tory MPs to bring forward the date of Step 4 of the road map, but he said there was "no reason" why the July 19 deadline would not be met.
The prime minister signalled that the "terminus" date would mean going "back to life as it was before Covid as far as possible".
In his first Commons statement since replacing Matt Hancock, Javid told MPs: "There remains a big task ahead of us to restore our freedoms - freedoms that, save for the greatest of circumstances, no government should ever wish to curtail.
"So my task is to help return the economic and cultural life that makes this country so great while of course protecting life and our NHS."
The pound was quoted at USD1.3871 early Tuesday, down from USD1.3884 at the London equities close Monday.
The euro was priced at USD1.1918, down from USD1.1932. Against the yen, the dollar was trading at JPY110.54, flat from JPY110.53.
Brent oil quoted at USD74.33 a barrel on Tuesday morning, lower against USD75.32 late Monday in London. Gold was trading at USD1,778.50 an ounce, down slightly from USD1,779.56.
Tuesday's international economic calendar has eurozone consumer confidence at 1000 BST, followed by German inflation at 1300 BST.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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