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Worldpay agrees £9bn takeover by rival Vantiv

05 July 2017 17:00

FTSE 100 payments processor Worldpay (WPG) agreed to be taken over by rival Vantiv in a cash and shares deal worth 368p per share at the time of writing.

Shares in Worldpay fell 9% to 371.2p to reflect Vantiv's offer price. The fact that previously-interested party JPMorgan Chase said it wouldn't make an formal offer also lowered the chances of a bidding war.

In the property sector, housebuilders rallied following an 'excellent' trading performance at Persimmon (PSN).

The UK housebuilder said it had seen strong momentum moving into the second half of the year and highlighted an 18% jump in total forward sales to £1.6bn.

This had a strong read across for Persimmon's peers and lifted shares in most housebuilders including Taylor Wimpey (TW.) and Barratt Developments (BDEV).

Brent crude oil declined 3% to $48 per barrel. Gold was stable at $1,217 per ounce and copper decreased 1.4% to $5,820 per tonne.

On the economic front, the UK service sector grew at a slower rate. Markit's Purchasing Managers' Index nudged lower from 53.8 in May to 53.4 in June as subdued business confidence affected sentiment. The figure was still over 50, a level which represents expansion.

OVERSEAS MARKETS

On Wall Street, the market was trying to anticipate the US Federal Reserve's next move before it releases minutes later today from its meeting in June, when interest rates were hiked for a second time.

The S&P 500 was flat at 2,427.

US-listed Vantiv declined 3% to $60.40 as it revealed the terms for buying Worldpay in the UK.

FTSE 250 RISERS AND FALLERS

Among the mid cap stocks on the UK stock market, specialist building products distributor SIG (SHI) excited investors. The company's improving like-for-like sales helped overshadow a poorer first half performance due to a tough comparative period. The shares rose 4.2% to 152p.

Shoppers took advantage of Ocado's (OCDO) loyalty scheme and were put off by fewer multi-buy promotions. These factors hit Ocado's average basket size by 1.4% to £108.45, highlighting a worrying trend that has continued through 2017. The market overlooked this point and focused on higher sales, helping the stock to move 0.6% higher to 291.5p.

Remaining in the food sector, shares in Londis owner and takeover target Booker (BOK) jumped 3.5% to 190.7p on a decent trading update for the quarter to 16 June. The company reported a 9.6% increase in like-for-like sales thanks to good weather and the late Easter. Earlier this year, Tesco (TSCO) announced plans to acquire Booker, which is why the stock jumped 3.8% to 173.4p.

Retirement housebuilder McCarthy & Stone (MCS) ticked 2.6% up to 167.6p after it continued to increase its forward order book and reservation rates.

SMALL CAP RISERS AND FALLERS

Land specialist MJ Gleeson (GLE) said results would be at the top end of market forecasts, boosting the share price by 6.6% to 667.5p.

Tiles retailer Topps Tiles (TPT) slipped 0.9% to 82.2p on lower like-for-like sales amid weaker macro-economic conditions. The company also struggled with a strong comparative period (April 2016).

A positive business update and news of a proposed £2.5m unsecured loan facility to support growth at Nektan (NKTN) helped attract interest in the gaming solutions provider, prompting the shares to soar 17% to 20.5p.

Story provided by StockMarketWire.com

Related Company: WPG

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