UK WINNERS & LOSERS: Thomas Cook Up As China's Fosun Takes Stake

LONDON (Alliance News) - The following stocks are amongst the biggest risers and fallers within the main London indices midday Friday.
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FTSE 100 WINNERS
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Weir Group, up 6% at 1,831.7 pence. The oil and gas service company's shares are rising on press reports about speculation that it could attract a bid from a US private equity firm. The Independent said that GE Capital is being linked with making a 2,800.00 pence per share bid, though it does attribute this to "starry-eyed punters".

ITV, up 1.2% at 244p. Liberum has raised the broadcaster's price target to 310p from 255p, keeping its Buy rating. The broadcaster shares have risen around 7% in the past week as several brokers have lifted price targets and recommendations. Goldman Thursday included the company in its "Conviction Buy List", with its price target at 284p from 253p, while JP Morgan raised its price target for the group to 251p from 243p, with a Overweight rating.
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FTSE 100 LOSERS
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Fresnillo, down 1.8%, Randgold Resources, down 1.5%. The gold miners are suffering from the weakness in precious metal prices, which have fallen over the last four days. Gold is down at USD1,196.85 Friday morning.

Anglo American, down 1.0%, and Rio Tinto, down 0.7%. Iron ore prices have fallen to a fresh six-year low of USD59.30 a tonne, according to reports. Rio also said Friday that it has increased its reserves in the Diavik diamond project, the Pilbara iron project and the Hail Creek Coal project.

AstraZeneca, down 1.0%. The pharmaceutical giant guided that it expects its total revenue to decline by a mid-single digit percentage at constant exchange rates in 2015, in line with previous sales revenue guidance it gave at the time of its full-year results. AstraZeneca said that based on current exchange rates, total revenue is expected to decline by low double-digit percent at actual exchange rates, and core earnings per share is expected to be broadly in line with 2014.
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FTSE 250 WINNERS
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Thomas Cook Group, up 19%. The travel operator said it has struck a strategic deal with Chinese investment group Fosun International under which the latter will acquire a 5% stake in Thomas Cook, or 73.1 million shares, for GBP91.8 million. The shares are valued at 125.58 pence, compared to the travel firm's closing price Thursday of 120.60p. Fosun, which recently bought France's Club Med, will also raise its stake to 10% by buying more shares in the open market. Shore Capital says the deal is a good one for Thomas Cook.

Afren, up 10%. The troubled oil and gas company, which will be relegated from the FTSE 250 on March 23, is looking to China to bring in "substantial" new capital in the form of new equity, the Financial Times reported. Ethelbert Cooper, the Liberian entrepreneur who founded Afren, plans to recapitalize the company in partnership with a consortium of Chinese investors. This will become the first Africa-China partnership in the oil and gas sector listed in the UK.
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FTSE 250 LOSERS
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Just Retirement Group, down 7% at 162.3p. Permira, the principal shareholder of Just Retirement Group, has sold around 50 million shares or a 10% stake in the company at a price of 162 pence per share through a secondary placing with institutional investors, raising GBP81 million for the private equity company. Permira had a 62.27% interest in the annuities provider, and that will fall to about 52%.
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AIM ALL-SHARE WINNERS
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Snoozebox Holdings, up 14%. The portable accommodation company confirmed media speculation that it has been selected to work on the Ealing Council tender for modular accommodation in London. Snoozebox said it, along with support services company Mears Group, has been selected to provide turnkey modular serviced accommodation as part of the Ealing Council tender for an immediate short-term housing solution.
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AIM ALL-SHARE LOSERS
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Daniel Stewart Securities, off 29%. The institutional stockbroker, wealth manager and corporate advisory's shares have been restored to trading following the publication of its restated results for 2014. The company got into difficulties last year after it identified a shortfall in regulatory capital, and its shares were suspended as it sought new funding to strengthen its balance sheet. The group in January said it has secured GBP1.5 million in new funding through two cash subscriptions and via a loan note agreement.

By Daniel Ruiz; danielruiz@alliancenews.com

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