UK stocks didn’t get off to the best of starts on Monday morning as doubts grow as to whether or not there will actually be a Brexit deal.
Despite positive noises over the weekend, EU chief negotiator Michel Barnier said a ‘big gap’ still remains over customs arrangements.
This news led the pound to dip to a little under $1.26 on the dollar. That helped stemmed some losses on the FTSE 100, with the UK’s benchmark index down 0.4% to 7,216.43.
The FTSE 250 however, which is more exposed to Brexit news as the companies in it are more domestic-focused, was down almost 1.2% to 19,807.80.
SOPHOS SET FOR TAKEOVER
Cybersecurity firm Sophos (SOPH) jumped 36.6% to 581p after a US private equity giant announced that it is set to buy the company in a deal that values it at £3.1bn.
Thoma Bravo said this morning it would take the FTSE 250 company private. Sophos shareholders will receive $7.40 (£5.88) in cash for each share, a premium of 37% to the company’s closing price on Friday.
Initial reaction from analysts was largely positive, with many believing the price to be paid as ‘fair and reasonable’.
The deal would cap a short stay on public markets for Sophos. The Oxfordshire-based firm, which sells cybersecurity software to SMEs, was floated by private equity group Apax Partners in 2015 for £1bn, one of the tech sector’s most high-profile IPOs.
FERREXPO DROPS ON REPORTED CEO DRAMA
Iron ore miner Ferrexpo (FXPO) dropped 2.2% to 144p as its board of directors acknowledged recent press reports regarding CEO and majority shareholder Kostyantin Zhevago.
Ukrainian prosecutors reportedly want to place Zhevago on the international wanted list after it was claimed that he failed to show up for questioning about his former company.
According to the Telegraph, it is thought that investigators are probing claims Zhevago embezzled funds from Finance & Credit JSC, a bank that he owned until 2015.
Ferrexpo’s board said it has been ‘informed that Mr Zhevago has not been served with any legal notice and Mr Zhevago strongly denies any allegations of wrongdoing.’
INVESTORS STILL KEEN ON EMERGING MARKETS
Emerging markets investment fund company Ashmore (ASHM) edged 0.2% higher to 480p following a mixed first quarter trading update.
The amount of money it manages, called assets under management (AUM), was broadly flat in the quarter to 30 September.
Net inflows of $2.4bn showed that investors are still keen on emerging markets, but this was offset by $2.3bn in negative investment performance, showing that there are still some risks to investing in this area.
Oil and gas producer Energean Oil & Gas (ENOG) dipped 0.65% to 921p after announcing a deal to sell its assets in the North Sea for up to $280m.
The sale is part of the group’s plan to become the biggest independent gas-focused exploration and production company in the Mediterranean, with the North Sea sale part of its plan to ‘dispose of non-core assets’.
NOT-SO-HOT PROPERTY
Property investment company CLS Holdings (CLI) dropped 2.3% to 255p as it completed the £14.9m acquisition of an office block in Reading.
CLS said the acquisition has a net initial yield of 7.3%. The building is 92% let, and CLS added that it intends to conduct a number of upgrades to the building while focusing on leasing the remaining space in the building over the next few years.
Another property company, LondonMetric (LMP) also saw its share price dip in early morning trading, falling 1.5% to 220p as it announced it has sold an office (at a yield of 6%) and a distribution warehouse (at a yield of 7%) for a combined £11.6m.
Superdry (SDRY) dropped 1.1% to 428p after it announced that co-founder, and significant shareholder, Julian Dunkerton has had his contract as chief executive officer extended to April 2021.
The firm said, ‘Today's announcement reflects the board's unanimous view that he is the right person to lead the business through this initial crucial phase of the turnaround.’
