U.K. Stocks Including Vodafone Group Fall; ITV Shares Advance
By Sarah Thompson
Feb. 4 (Bloomberg) — U.K. stocks including Vodafone Group
Plc declined. Rio Tinto Group retreated after Numis Securities
Ltd. suggested investors “take profits.
ITV Group Plc rallied after the Observer reported private
equity firms are considering a 3 billion-pound ($5.9 billion)
bid for the U.K. television broadcaster. BT Group Plc increased
after JPMorgan Chase %26amp; Co. raised its recommendation on the
stock.
The FTSE 100 Index added 7.4, or 0.1 percent, to 6,036.6 at
9:36 a.m. in London as 42 stocks dropped and 57 gained. The FTSE
All-Share Index gained 0.2 percent and Irelands ISEQ Index
decreased 0.3 percent.
Vodafone, the worlds largest mobile-phone company, fell 1
percent to 179.5 pence. The shares increased 3.4 percent Feb. 1.
Rio Tinto lost 2.1 percent to 5,485 pence.
“We believe this is an excellent opportunity to take
profits in Rio Tinto in the belief that neither potential M%26amp;A
activity nor its underlying valuation justify Rios current
share price, Numis analyst Simon Toyne in London wrote in a
research note dated Feb. 1.
Separately, the Observer reported that China is preparing a
legal challenge to block BHP Billiton Ltd.s $130 billion
proposal to buy rival Rio Tinto, without saying where it got the
information.
ITV jumped 3.7 percent to 79.3 pence. Apax Partners
Worldwide LLP and Kohlberg Kravis Roberts %26amp; Co. are among
private equity companies considering a 3 billion-pound bid for
ITV, the Observer reported yesterday, citing investment bankers
it didnt identify.
Bidders
The bidders, who could act separately or as a partnership,
are considering an offer of about 100 pence a share, the London-
based newspaper said.
BT, Britains largest phone company, rose 0.4 percent to
265.5 after JPMorgan raised its recommendation to “neutral
from “underweight.
“We expect third-quarter results to reassure regarding
Global Services near-term exposure to an economic downturn and
BTs 15 percent margin target, analysts including Hannes
Wittig in London wrote in a research note.
The following stocks also rose or fell in the U.K. markets.
Stock symbols are in parentheses.
U.K. Companies:
Cairn Energy Plc (CNE LN) advanced 59 pence, or 2.3
percent, to 2,604. The U.K. explorer that produces oil and
natural gas in south Asia was raised to “overweight from
“equal-weight at Morgan Stanley.
Cairn is “on track to increase production from its
Mangala field in Rajasthan, India, Morgan Stanley wrote in a
note.
Friends Provident Plc (FP/ LN) gained 3 pence, or 2.2
percent, to 139. J.C. Flowers %26amp; Co. plans a new bid for Friends
Provident Plc and may send a letter to the chairman of the U.K.
insurer as early as next week, the Financial Times reported,
citing unidentified people close to the situation.
London Scottish Bank Plc (LSB LN) decreased 1.5 pence, or
5.2 percent, to 27.5. The bank may sell assets to help plug a
shortfall in its capital base, the Sunday Telegraph reported,
without saying where it got its information.
London Stock Exchange Group Plc (LSE LN) added 8 pence, or
0.5 percent, to 1,750. Qatar Investment Authority wants to
increase its stake in the London Stock Exchange Group and may be
interested in bidding for the company, the Independent on Sunday
reported, without saying where it got the information.
Randgold Resources Ltd. (RRS LN) dropped 102 pence, or 4.1
percent, to 2,368. The owner of two gold mines in Mali said
fourth-quarter net income increased to $13.4 million, or 19
cents a share, from $9.98 million, or 14 cents, a year earlier.
That fell short of the $17.8 million, or 25 cents a share,
median estimate of five analysts surveyed last week by Bloomberg
News.
Royal Bank of Scotland Group Plc (RBS LN) rose 6.75 pence,
or 1.7 percent, to 395.5. The bank has drawn up plans to sell
assets, including part of its stake in Bank of China, if the
turmoil on global financial markets forces it to raise cash, the
Sunday Telegraph reported.
Sage Group Plc (SGE LN) gained 3.5 pence, or 1.6 percent,
to 226.25. The U.K.s largest software maker said first-quarter
financial results met the companys forecast.
Soco International Plc (SIA LN) added 33 pence, or 1.7
percent, to 1,989. The U.K. oil company that explores in Africa
and Asia agreed to sell its Yemeni subsidiary to a unit of
Sinochem Corp. for an enterprise value of $465 million.
SThree Plc (STHR LN) increased 8.75 pence, or 4.4 percent,
to 208. The U.K. recruiter for information technology companies
said full-year profit almost tripled on more placements of
permanent workers.
Unilever (ULVR LN) fell 22 pence, or 1.3 percent, to 1,695.
The worlds second-largest maker of food and detergent bought
ice-cream producer Inmarko to expand in Russia and Kazakhstan.
Wolfson Microelectronics Plc (WLF LN) fell 4.5 pence, or
2.8 percent, to 154. The U.K. maker of semiconductors for Apple
Computer Inc.s iPods said it expects solid growth in 2008
despite “uncertain market conditions.
Irish Companies:
Fyffes Plc (FFY ID) gained 1 cent, or 1.1 percent, to 93
cents. Contact has been made between tropical-fruit distributor
Fyffes Plc and DCC Plc aimed at settling a dispute over DCC
Executive Chairman Jim Flavins trading of Fyffes shares, the
Sunday Business Post reported, without citing anyone.
Iona Technologies Plc (ITP ID) added 10 cents, or 5
percent, to 2.12 euros. The Irish maker of software to help
companies integrate networks may be a takeover target, the
Sunday Business Post reported, without citing anyone.
Ryanair Holdings Plc (RYA ID) slid 30 cents, or 8.3
percent, to 3.3 euros. Europes biggest discount airline said
profit declined for the first time in seven quarters as
increased competition hurt ticket prices.
To contact the reporter on this story:
Sarah Thompson in London at
