Takeover activity among FTSE 250 stocks dominates the news agenda at the start of the new trading week.
Housebuilder Bovis Homes (BVS) has rejected two takeover approaches from Redrow (RDW) and Galliford Try (GFD).
The Redrow proposal is structured as a cash and shares deal and values Bovis at a discount to its closing share price last Friday. Galliford wants an all-share merger with its shareholders owning 52.25% of the enlarged business. Its approach has been priced at a 7% premium.
Oil services group Amec Foster Wheeler (AMFW) has received an all-share takeover offer from Wood Group (WG.), priced at 15% above its share price last Friday.
Wood’s shareholders would own two thirds of the enlarged group if the deal is successful. The suitor believes the corporate tie-up would be earnings accretive in the first full year once the transaction has completed.
Amec shares jump 17.9% to 576.5p on the news. We said last week to buy the stock at 449.2p on improving prospects for the business. You can read that article for free here.
Rex Bionics (RXB:AIM) crashes 69% to 4p after saying it needs more money by the end of April to keep trading. It is in talks to sell its business to a new operating company, although it doesn’t say how much existing shareholders would own of this new entity. It says shareholders may lose all their money if that deal fails and Rex cannot find alternative sources of cash.
Hutchison China Meditech (HCM:AIM) has reported full year results ahead of expectation on the back of record revenues. Sales rise 21% to $216.1m.
‘We believe Hutchison has started to demonstrate the quality of its strategy and ability to execute in one of the most challenging areas of medicine with some potentially transformational programmes, covering eight drug candidates now in 30 active clinical trials (2015: 19),’ says Panmure Gordon analyst Mike Mitchell.
Shares in Hutchison, which is one of the largest stocks on AIM, rise 4.9% to £25.30.
Back in the oil services sector, Cape (CIU) has announced £52.5m out-of-court settlement for asbestos product liability litigation. It has to pay £18m upfront and the rest in staged payments over the next six years.
Pawnbroker H&T (HAT:AIM) has reported 42.6% rise in full year pre-tax profit to £9.7m and cites good growth in its loan book. Its shares retreat 1.2% to 269.19p.
Quadrise Fuels (QFI:AIM) falls 27.5% to 8.52p after suspending a marine trial for its low-cost alternative to heavy fuel oil as the Maersk-owned vessel is needed elsewhere.
