(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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AstraZeneca, up 2.5%. Morgan Stanley raised the Anglo-Swedish drugmaker to Overweight from Equal Weight.
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FTSE 100 - LOSERS
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HSBC Holdings, down 1.5%. Bank of America downgraded the China-focused lender to Underperform from Neutral.
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FTSE 250 - WINNERS
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Micro Focus International, up 16%. Goldman Sachs upgraded the software firm to Buy from Neutral.
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Games Workshop, up 4.0%. The miniature wargames manufacturer said its preliminary estimates show increases in both sales and pretax profit, despite UK government restrictions on shop openings. The retailer expects to report pretax profit of at least GBP90 million for the six months ended November 29. This would be up 53% from GBP59 million a year ago. It expects to report sales of about GBP185 million, up 25% from GBP148 million. Games Workshop also declared a dividend of 60 pence, which it said is in line with its policy of distributing "truly surplus cash".
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OTHER MAIN MARKET AND AIM - WINNERS
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IMIMobile, up 47% at 593.02p. The cloud communications software provider has agreed to a takeover offer from Cisco Systems, valuing the AIM-listed firm at GBP543 million. Cisco Systems is to pay 595p per share for IMImobile, valuing IMImobile's entire share capital at around GBP545 million on a fully diluted basis. Cisco has already received irrevocable undertakings to vote in favour of the deal in respect of 25.8 million IMImobile shares, representing approximately 31.3% of IMImobile's share capital. These are from 18.7% shareholder Liontrust and from IMImobile directors holding an approximately 12.6% stake. IMImobile also reported its interim results, showing a steep profit rise to GBP3.5 million in the six months ended September 30 from GBP1.3 million a year before. IMImobile said outlook for its current financial year, ending in March 2021, is still in line with board expectations.
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Countrywide, up 23% at 314.00p. Connells significantly raised its takeover offer for its fellow UK estate agency, while dismissing a rival proposal from Alchemy Partners. Connells announced a firm cash offer for Countrywide at a price of 325 pence per share, which values the London Main Market listing's equity at GBP112.1 million and implies an enterprise value of GBP200.2 million including Countrywide's debt. Connells said it decided to increase its previous proposed offer price by 30% after discussions with Countrywide's shareholders last week. It said the cash offer means shareholders would receive "immediate, certain and significant value at a 124% premium" to Countrywide's closing share price of 145.00p on November 6. In response, Countrywide said Monday it will evaluate the merits of the Connells offer but urged shareholders to take no action in the meantime. Likewise, Alchemy said Monday it is considering its options, following the announcement by Connells.
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OTHER MAIN MARKET AND AIM - LOSERS
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Elementis, down 3.1% at 122.83p. The speciality chemicals company said it has rejected a third takeover offer made by Minerals Technologies, labelling the 130.00p per share offer "highly opportunistic". On November 5, Elementis received the first approach from mineral producer Minerals Technologies, proposing a purchase price of 107p per share. However, that proposal was rejected following a review by Elementis' board, management and advisers. A second proposal at 117p per share, received on November 24, was also rejected. On Monday, the company said it received a revised proposal at 130p per share on Friday but said the board unanimously rejected the offer after a review concluded the proposal is highly opportunistic, coming at a low point of earnings and value, adding that the offer also significantly undervalues its future prospects. Separately, Elementis stated trading in the fourth quarter of 2020 has continued to be resilient and in line with its expectations. It noted that while demand continues to be hurt by the pandemic, sales in October and November have shown progress compared to the third quarter.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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