(Alliance News) - AdvancedAdvT said Monday it has improved its takeover offer for advertising agency M&C Saatchi to include a cash element, but this has been rejected by the M&C Saatchi's independent directors.
AdvancedAdvt offered 1.633 AdvancedAdvt shares plus 40 pence cash for each M&C Saatchi share. The offer was an alternative to an all-share offer of 2.245 AdvancedAdvt shares for each M&C Saatchi share.
AdvancedAdvt also said it would move its shares to AIM, where M&C Saatchi currently is listed, from the London Main Market as part of M&C Saatchi offer. But following the rejection, AdvancedAdvT said it is "considering its options".
Vin Murria, the executive chair of AdvancedAdvT, is an M&C Saatchi director as well. AdvancedAdvT also is backed by Marwyn Investment Management.
"The board of AdvancedAdvT believe this is a truly beneficial merger; it provides significant investment and additional expertise to build on the existing M&C platform, seeking to drive M&C's future growth at significantly greater pace for the benefit of all stakeholders," it said.
M&C Saatchi shares were up 2.7% early Monday. AdvancedAdvT shares were unchanged.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: down 0.1% at 7,490.00
----------
Hang Seng: down 1.2% at 24,656.46
Nikkei 225: closed up 0.2% at 27,588.37
S&P/ASX 200: closed down 0.5% at 7,139.50
----------
DJIA: closed down 450.02 points, or 1.3%, at 34,265.37
S&P 500: closed down 84.79 points, or 1.9%, at 4,397.94
Nasdaq Composite: closed down 385.10 points, or 2.7%, at 13,768.92
----------
EUR: down at USD1.1325 (USD1.1343)
GBP: soft at USD1.3542 (USD1.3550)
USD: unchanged at JPY113.75
GOLD: up at USD1,838.75 per ounce (USD1,833.20)
OIL (Brent): up at USD88.45 a barrel (USD87.74)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Monday's key economic events still to come
0930 CET Germany flash purchasing managers' index
1000 CET EU flash PMI
0930 GMT UK CIPS-Markit flash manufacturing and services PMI
0945 EST US flash manufacturing PMI
0945 EST US flash services PMI
----------
UK Prime Minister Boris Johnson is facing a make-or-break week for his premiership with his future in No 10 hanging in the balance. Johnson is braced for the delivery of the Sue Gray report into Downing Street drinking parties during lockdown which could determine his fate. Many Tory MPs have said they will wait to see the findings before deciding whether to push for a vote of confidence which could see him forced out.
----------
Ukraine said it was "premature" of the US to evacuate the families of its diplomatic staff in Kyiv due to fears of a looming Russian invasion. "We consider such a step by the American side premature and a display of excessive caution," Ukrainian foreign ministry spokesman Oleg Nikolenko said in a statement. The EU is not following the US in withdrawing its diplomats' families from Ukraine, top European diplomat Josep Borrell said, adding that there was no need to "dramatise" the situation while talks with Russia continue. "We are not going to do the same thing because we don't know any specific reasons," Borrell said as he arrived for a meeting of EU foreign ministers which will include videolink participation by US Secretary of State Antony Blinken.
----------
Japan's private sector looks set to kick off 2022 with a renewed downturn, preliminary survey results from IHS Markit showed, as service providers suffered from new Covid restrictions. The au Jibun Bank flash Japan composite purchasing managers' index slumped to 48.8 points in January from 52.5 in December. A figure below 50.0 suggests business activity is shrinking. The flash services business activity index dropped to 46.6 points in January from 52.1 in December, though the flash manufacturing output index inched higher to 53.5 from 53.3.
----------
BROKER RATING CHANGES
----------
BofA raises Hargreaves Lansdown to 'buy' (neutral) - price target 1625 (1475) pence
----------
HSBC cuts Halma to 'reduce'
----------
RBC cuts AB Foods to 'sector perform' (outperform) - price target 2250 pence
----------
COMPANIES - FTSE 100
----------
Spirax-Sarco Engineering said it has agreed to buy Cotopaxi, an energy consulting firm, from Beijing-based Business Intelligence of Oriental Nations Corp. The price is GBP13.3 million, which is GBP12.8 million on a cash and debt free basis and will be funded from cash resources. Spirax-Sarco explained that Cotopaxi will be integrated within its Steam Specialties business, which serves industrial steam customers. "The business is an excellent strategic fit for us, as we are both focused on improving the efficiency and sustainability of industrial steam use. The software, platforms and experience they bring, together with the insights derived from over a decade of data analysis, will be a key accelerator for the digitally enabled customer solutions we offer in our Steam Specialties business," said Chief Executive Officer Nicholas Anderson.
----------
COMPANIES - FTSE 250
----------
Computacenter said it finished 2021 with a strong fourth quarter, which was ahead of its expectations. The IT services provider estimates that adjusted pretax profit for 2021 was slightly in excess of GBP250 million. Adjusted pretax profit had risen by 37% to GBP200.5 million in 2020. Computacenter also said it will deliver its "seventeenth year of uninterrupted earnings per share growth" in spite of pressures from a strong pound and product supply shortages. Total revenue for 2021 grew by 23% including the effects of acquisitions made since the beginning of 2020, and by 27% in constant currency. Revenue had risen by 7.7% in 2020 to GBP5.44 billion from GBP5.05 billion in 2019. During the recent year, Computacenter said it experienced the highest growth in Services revenue for the last 20 years, coupled with continued strength from Technology Sourcing product sales which was more broadly based in 2021 than the previous year.
----------
Petropavlovsk said it has appointed Stanislav Ploshchenko as its new chief financial officer, based in Moscow, with immediate effect. The Russian gold producer said Ploshchenko has over two decades of experience in finance including CFO positions at major publicly-listed companies. Ploshchenko began his career at lender Commerzbank before joining steel and coal producer Mechel, initially as head of corporate finance and then for seven years as CFO. Since 2016, he has served in several senior posts at East Mining Co, including CFO, acting CEO, and deputy CEO for business efficiency. Outgoing CFO Danila Kotlyarov will remain with the company until February 28, and thereafter take on an advisory role, in order to ensure a smooth transition, Petropavlovsk added.
----------
COMPANIES - MAIN MARKET AND AIM
----------
Security printed products maker De La Rue warned adjusted operating profit will fall short of market expectations in the financial year ending March 26. De La Rue expects this measure to be "broadly similar" to financial 2021 in the range of GBP36 million to GBP40 million, short of the current consensus of GBP45 million to GBP47 million. De La Rue blamed higher commodity and energy costs, as well as supply chain problems and employee absences due to Covid-19. It said net debt expectations remain unchanged, however, and noted the expected profit result still represents substantial growth for its two core businesses of Currency and Authentication.
----------
Monday's shareholder meetings
JPMorgan European Investment Trust PLC - GM re share consolidation and name change
Pantheon Resources PLC - AGM
Savannah Energy PLC - GM re Exxon assets acquisition
Vela Technologies PLC - AGM
----------
By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Halma (HLMA)
Hargreaves Lansdown (HL.)
De La Rue (DLAR)
AB Foods (ABF)
M&C Saatchi (SAA)
Advancedadvt (ADVT)