(Alliance News) - Stock prices in London turned immediately lower early Monday after a marginally higher open, while Burberry shares fell after its Italian chief executive announced his departure to join a Florence-based rival.
The FTSE 100 index was down 7.52 points, or 0.1%, at 7,128.55. The mid-cap FTSE 250 index was down 48.87 points, or 0.2%, at 22,600.14. The AIM All-Share index was flat at 1,251.02.
The Cboe UK 100 index was down 0.1% at 709.50. The Cboe 250 was down 0.1% at 20,291.73, and the Cboe Small Companies was flat at 15,391.10.
In Paris, the CAC 40 was up 0.1%, while Frankfurt's DAX 30 rose 0.2%.
In the FTSE 100, GlaxoSmithKline was up 0.7%. The drugmaker has hired two investment banks to advise on plans to list its consumer unit next year and defend against the influence of activist investor, Elliott Investment Management, Bloomberg reported late Friday.
Bloomberg said that the pharmaceutical firm has hired Goldman Sachs and Citigroup to assist with its planned spinoff.
On Wednesday last week, GlaxoSmithKline confirmed plans to separate its Consumer Healthcare arm, which includes products such as Aquafresh toothpaste and Nicorette gum. GlaxoSmithKline said it aims to list the division on the London Stock Exchange by mid-2022, but will continue to hold up to 20% of the business to sell at a later time.
The separation and an accompanying 30% dividend reduction are designed to enhance GSK's focus on its drugs for cancer, HIV and other diseases.
At the other end of London large-caps, Burberry Group was the worst performer, down 5.5%. The UK fashion house said Marco Gobbetti will step down as CEO and leave the company at the end of 2021, as Italian fashion firm Salvatore Ferragamo said it has hired Gobbetti as CEO and general manager.
Burberry explained that Gobbetti - who it said has led a transformation of the British luxury brand and business - will be stepping down to take up "another opportunity that will enable him to return to Italy and be closer to his family".
Ferragamo said Gobbetti will take up his position as soon as he is released from his contractual obligations at Burberry. It noted that he is "an Italian manager with a long and relevant professional career in the luxury and fashion sector".
Gobbetti was appointed as CEO of Burberry in 2016 and, alongside Chief Creative Officer Riccardo Tisci, was tasked with turning the business around after investors lost confidence in previous CEO Christopher Bailey. Gobbetti took over from Bailey in November 2017.
The UK luxury retailer, famed for its trench coats, will now begin the search for a successor. Burberry anticipates Gobbetti will remain with the company until the end of the calendar year. In that time, he will work with Chair Gerry Murphy to provide full support to the executive leadership team on an orderly transition, Burberry added.
Ferragamo shares were up up 2.0% in Milan. Founded in 1927, Ferragamo sells high-end shoes, leather goods, apparel, silk products and other accessories, along with women's and men's fragrances.
St James's Place and M&G were down 1.0% and 0.5% respectively, after HSBC downgraded the investment managers to Hold from Buy.
Glencore was down 0.1%. The miner and commodities trader agreed to buy BHP's and Anglo American's interests in the Cerrejon coal mine in Colombia for USD588 million. BHP was flat and Anglo American was up 0.4%.
In the FTSE 250, Dr Martens was best performer, up 2.4%, after HSBC upgraded the boot maker to Buy from Hold.
At the other end of London midcaps, Ultra Electronics was the worst performer, down 5.2%. The defence contractor late Friday said it has terminated talks regarding a possible combination with Cobham.
Earlier on Friday, former FTSE 250 member Cobham, which is controlled by Advent International, said it is mulling a potential takeover offer for Ultra, with a view to create a "global defence electronics champion".
The London-based firm confirmed that it was at the very early stages of exploratory discussions around a possible combination of some or all of its Intelligence & Communications Strategic business unit and entities within Cobham's CAES group.
These discussions have now been terminated by Ultra, the company said in its statement Friday.
The Japanese Nikkei 225 index closed down 0.2% on Monday. In China, the Shanghai Composite ended flat. The Hang Seng index in Hong Kong was down 0.1%, after resuming trading following a morning suspension due to heavy rain. The S&P/ASX 200 in Sydney ended flat.
The pound was quoted at USD1.3966 early Monday, up from USD1.3910 at the London equities close Friday, rebounding from a low of USD1.3903 in early trade Monday.
The euro was priced at USD1.1943, flat from USD1.1945. Against the yen, the dollar was trading at JPY110.63, down from JPY110.75.
Brent oil was quoted at USD76.12 a barrel Monday morning, up from USD75.81 late Friday. Gold stood at USD1,784.38 an ounce, slightly higher from USD1,781.20.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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