The gambling industry once again hits the headlines following new reports that the government might slash the maximum stake on fixed odds betting terminals (FOBT) to just £2.
This story has run and run but it is having a massive impact on bookmaker stocks in early trade on Tuesday, with shares in William Hill (WMH) plunging 11% on the news to 300.5p, valuing the bookie at £2.56bn.
William Hill shares have run up strongly in recent months from levels below the 250p per share arm in October.
The reports are putting the squeeze to other quoted gambling stocks, with Paddy Power Betfair (PPB), the UK’s biggest quoted gaming firm, heading the FTSE 100 loser board on Tuesday, its stock off nearly 3% at £71.20.
Shares in GVC (GVC), which owns Ladbrokes Coral, are down around 4.5% at 927p.
Going the other way, utility groups are back in favour after recent sell-offs with water suppliers United Utilities (UU.) and Severn Trent (SVT) both trading towards the top of the FTSE 100 leader board on Tuesday, up close on 2% at 716.8p and £18.94 respectively.
BROADBAND NETWORK BUYOUT
British fibre broadband network builder CityFibre (CITY:AIM) is the subject of a surprise buyout on Tuesday after agreeing a £538m deal. The cash offer comes from a consortium formed by Antin and West Street Infrastructure Partners.
That sparks a massive 89% hike in CityFibre's share price on Tuesday to 79.4p.
CityFibre, which also puts out full year results today, has been building new superfast broadband networks in medium-sized towns up and down Britain, lately in partnership with mobile giant Vodafone (VOD).
Elsewhere, London Stock Exchange (LSE) reports higher quarterly income as its clearing, capital markets and FTSE Russell businesses grew strongly, further helping ease lingering investor after a difficult 2017 for the company.
But the news leaves investors fairly cold, the shares nudging a bare 0.6% higher in early deals to £42.40. The LSE recently appointed a new chief executive officer with David Schwimmer replacing the outgoing Xavier Rolet.
ACTIVIST STAKE REVEALED
After recent speculation, not least in Shares, activist investor Elliott Capital has been revealed on the register of beleaguered software group Micro Focus (MCRO) following recent convert stakebuilding.
Elliott has built a 5.1% shareholding in the FTSE 100 software company Micro Focus, although its intentions remain unclear for the time being. But it is likely to involve seeking any number of divestments, a management shake-up, or even a take-private/trade sale.
Micro Focus shares have rallied strongly as the speculation of Elliott’s interest has swirled around the City, from recent 911p lows. The stock is today largely flat at £13.14.
There’s further shareholder shake-ups at controversial challenger bank Metro Bank (MTRO) as shareholder Royal London Asset Management reportedly plans to oppose the re-appointment of Vernon Hill as chairman.
Among the complaints likely to be aired at the AGM later today are questions over the £21m in payments to his wife’s company InterArch since 2010, for architectural design services, branding, marketing and advertising.
Metro Bank stock remains on the front foot despite the controversy, adding 1.3% on Tuesday to £35.36.
ASTRA TO PROP-UP DRUGS DEVELOPER
British pharmaceutical company AstraZeneca (AZN) plans to subscribe for more shares in stricken biotech firm Circassia (CIR) by injecting cash into the respiratory drug specialist to take its stake to a maximum of 19.9%.
AstraZeneca currently owns a 14.2% stake in the business. Circassia shares remain flat at 88.2p in the wake of its own loss-ridden full year figures, while Astra shares nudge 1% lower to £49.685.
The UK government could intervene in the Daily Mirror publisher Trinity Mirror’s (TNI) deal to buy the Express tabloids and other titles because of the potential impact on editorial decision making and a need for a range of views in newspapers.
Trinity shares fade by nearly 2% to 22.1p.
