FTSE 100 stocks open flat at 6,826 ahead of a UK third quarter GDP estimate update at 9.30am with most of the bigger movers at the small cap end of the market.
Shares in Constellation Healthcare (CHT:AIM) are up 34% at 250p after a 270p a share takeover while Fastjet (FJET:AIM) sinks 19% to 13p as the African airline signals the need for more capital from shareholders.
Constellation, which provides billing services to physicians in the US, has recommended the 270p a share offer to shareholders though is also allowed to look for other potential buyers until the deal is approved, according to a statement made to the stock market today. The deal, if completed, will mark the end of a short but successful venture for the business on AIM, which joined the market in December 2014 at 135p a share.
Moving the other way, Fastjet is down heavily this morning because of higher-than-expected costs incurred on a business turnaround plan which will mean shareholders are likely to need to provide more capital. Fastjet's need for new capital comes after a previous shareholder cash call only four months ago in July 2016 and chairman Colin Child is resigning as a result.
Among the larger companies, BHP Billiton (BLT) says it is paying $181m (£145m) to fund remediation and compensation programmes following a mud slide at its Samarco operation in Brazil. Shares trade flat at £13.62.
Pennon (PNN) gains 1.5% to 822p as the water and waste utility delivers flat top-line growth and a 6% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the six months to 30 September. Chief executive Chris Loughlin says the business is 'well placed for the future' without providing further guidance.
Equipment hire outfit VP (VP.) cranks up 0.2% to 724p after securing a bolt-on acquisition in New Zealand. The Harrogate-headquartered outfit is buying test and measurement specialist TechRentals for $2.6m New Zealand dollars (£1.5m).
Half-year results at auto retailer Caffyns (CFYN) send shares a little lower though only around £6,000 worth of shares have changed hands following the announcement. The stock trades at 541p as chief executive Simon Caffyn says new car sales are likely to be weaker moving into 2017 after unusually strong trading around the September new registration plate date.
