UK WINNERS & LOSERS SUMMARY: Codemasters Jumps As EA Outbids Take-Two

Mon, 14th Dec 2020 10:43

(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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Natwest Group, up 5.4%, Barclays, up 5.2% and Lloyds Banking Group, up 5.1%. Domestically exposed UK banks were higher after the UK and EU agreed to continue talks on post-Brexit trade. "The fact that negotiations have been extended to the end of the year gave investors hope that a deal could still be reached," said Russ Mould at AJ Bell. Housebuilders were also higher, with Persimmon up 4.9% and Barratt Developments up 4.2%.

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FTSE 100 - LOSERS

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AstraZeneca, down 4.7%. The drug maker said Saturday it was buying US biotech firm Alexion Pharmaceuticals for USD39 billion to boost its work on immunology. "Alexion has established itself as a leader in complement biology, bringing life-changing benefits to patients with rare diseases," AstraZeneca Chief Executive Pascal Soriot said in a statement, announcing the year's biggest deal in the pharma sector. Both boards have agreed to the cash-and-stock deal, which values Alexion at USD175 a share, a premium of 45% to the Boston-based company's closing price on Friday in New York of USD120.98. The new acquisition is expected to close in the third quarter of 2021, and Alexion shareholders will own 15% of the combined company. Alexion shares were up 34% in New York pre-market trade at USD161.89.

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FTSE 250 - WINNERS

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Polypipe up 10%. The plastic piping systems maker announced an rise in its expectations for operating profit, following continued recovery in the fourth quarter of 2020 to date. For November, Polypipe said that its performance in November had exceeded expectations, with revenue for the month up 8.0% year-on-year due to a strong performance in Residential markets. Operating margins have continued to benefit from the improved volume, however they have not yet reached normal levels due to operating inefficiencies caused by Covid-19. Looking ahead, Polypipe said its performance for December is also likely to beat expectations. As a result, for 2020 as a whole, the group has guided for underlying operating profit to be around GBP40 million. This is above the consensus range of GBP35 million to GBP37 million, but still reflects a 49% fall from GBP78.1 million reported for 2019.

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OTHER MAIN MARKET AND AIM - WINNERS

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Codemasters, up 20% at 642.00 pence. Codemasters Group said it has agreed to a GBP945 million takeover bid from Electronic Arts, withdrawing its previous recommendation of the GBP726 million offer made by Two Interactive Software. EA and Take-Two are US competitors in the video game industry. In November, American video game company Take-Two Interactive reached an agreement to buy the UK's Codemasters. However, Redwood City, California-based EA's 604 pence per share cash offer tops New York-based Take-Two's bid of 120 pence per share in cash and 365p in Take-Two shares, valuing Codemasters at 485p per share. Codemasters said its directors intend to recommend unanimously that shareholders vote in favour of the EA deal. Take-Two released a statement saying it will consider its position following the EA move and will make a further announcement "when appropriate".

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By Lucy Heming;Â lucyheming@alliancenews.com