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(Sharecast News) - Ocado surged to the top of the FTSE 100 on Friday as Deutsche Bank hinted at a possible buyout by Marks & Spencer.
In a research note on M&S, in which Deutsche lifted its price target on the buy-rated shares to 265p from 195p, it said: "Cash flow is no longer being squandered on an unsustainable dividend but saved to recover the investment grade credit rating that may be required to buy out Ocado."
M&S and Ocado became joint owners of Ocado Retail in August 2019. Marks paid Ocado £750m for a 50% share of the JV, which began trading in September 2020, when Ocado's partnership with Waitrose ran out.
At 0910 GMT, Ocado shares were up 5.6% at 1,874.50p.
Neil Wilson, chief market analyst at Markets.com, said: "It could happen, seems like a natural evolution to ultimately split the two businesses once the international deals actually start delivering some free cash."
11 Sep 2023 06:56
UK retailers warn chancellor against GBP400m business rates hike
(Alliance News) - Bosses of a raft of Britain's biggest retailers, such as Tesco PLC, Marks & Spencer Group PLC and Kingfisher PLC's B&Q, have urged Chancellor Jeremy Hunt to freeze their property taxes to avoid a roughly GBP400 million hike.
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