The FTSE 100 closed higher on Friday as Vodafone jumped 13% on a £4.4 billion stake sale to French billionaire Xavier Niel’s investment vehicle. easyJet led the FTSE 250 with a 14% gain on a £5.7 billion takeover approach from Apollo, though the blue-chip index still ended the week lower.
London’s blue-chip index closed up 24.84 points, or 0.2%, at 10,497.29, helped by a double-digit rise in Vodafone as investors took the latest US-Iran tensions in stride. The FTSE 250 gained 0.6% to 23,371.41, and the AIM All-Share rose 0.2% to 763.82. Even so, the FTSE 100 finished the week down 1.7%.
Vodafone leads on Niel stake deal
Vodafone was the standout performer, closing 13% higher after investment vehicle Vega agreed to buy e&’s entire 16.2% stake in the telecoms group for £4.4 billion. The deal will make French billionaire Xavier Niel Vodafone’s largest shareholder, subject to regulatory approval.
Vega has said it does not currently intend to make a takeover offer and plans to engage with the UK government over the transaction. Vodafone also confirmed that its relationship agreement with e& has ended and that e& nominee director Hatem Dowidar has stepped down from the board with immediate effect.
easyJet jumps on Apollo approach
On the mid-cap index, easyJet climbed 14% after agreeing in principle to the key financial terms of a possible £5.7 billion takeover proposal from Apollo. Apollo’s cash offer values easyJet at 715p per share, ahead of a rival 690p-per-share proposal from Castlelake.
The easyJet board said it was no longer minded to recommend the Castlelake proposal, regarding Apollo’s approach as “a superior outcome for shareholders.” However, the Apollo proposal does not yet constitute a firm offer under the UK Takeover Code.
The day’s biggest fallers
At the other end of the blue-chip index, St James’s Place slumped 8.6% after a report that partner firm Sovereign Wealth had decided to leave the group. AstraZeneca fell a further 3.9%, extending losses after disappointing phase three trial results for Wainua earlier in the week.
Source: Share Talk
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