FTSE 100 By Sep 22: Ladbrokes Owner Considering DraftKings Takeover Approach
A high-stakes lawsuit by Ladbrokes owner Entain was the main focus of London investors today after the FTSE 100 index company confirmed an approach by DraftKings launched at Â£ 28 per share, which equates to more of $ 22 billion.
He told investors he was reviewing the proposal amid huge interest in the growing US sports betting market.
The FTSE 100 index, meanwhile, rallied 1% larger than expected to climb back above the 7,000 threshold as a bond deal by Chinese Evergrande allayed immediate concerns about its future for help the elite take advantage of Tuesday’s 1% improvement.
Jab maker AZ Biomedica raises Â£ 50million
Oxford Biomedica today announced a Â£ 50million injection from the world’s largest vaccine maker.
The Oxford University spin-off, which pumped out tens of millions of doses of AstraZeneca’s Covid-19 vaccine, said the money from India’s Serum Institute – in return for a stake of 3, 9% – would allow it to expand its research and manufacturing capabilities. .
The investment caps six months for biotech, led since 2008 by CEO John Dawson, which generated underlying profits of Â£ 27.1million on revenues of Â£ 81.3million, up from 139% compared to the first semester.
It will be used to almost double the lab and manufacturing space available at its 84,000 square foot Oxbox factory – a converted Royal Mail sorting office – and to recruit another 120 employees, bringing the workforce to around 850.
Half-year revenue was “largely driven” by its partnership with Astra, which is expected to reach Â£ 100million this year.
But the company is using its strong track record and improved profile to expand its own portfolio of genetic therapies and further develop the viral vectors used to deliver cancer, cystic fibrosis and other drugs produced by partners such as Novartis, Orchard Therapeutics and Bristol Myers Squibb.
Today Dawson did his best to tone down speculation that he may be considering a move after more than a decade at the helm: âWe have nothing to update the market at this time. I am here, I am enthusiastic and I am working hard, âhe said.
Shares have risen 52% so far this year and are up 6% this morning to 1566.0p, making it the first winner on the FTSE250 and valuing the company at around Â£ 1.3bn.
Bowling firm Ten Entertainment shares on the rise
Bowling group Ten Entertainment said today that the stay boom has resulted in “one-off” exchanges over the summer.
The AIM-listed company, which has 46 centers including Acton and Croydon, reported a pre-tax loss of Â£ 10.8million for the six months to June 27. She had to close sites for part of that time due to closures.
But he added that comparable sales over the past three months have jumped.
He warned that the current strong demand is “likely moderate to high single digits [growth] into 2021 as the holiday bubble fades. âBut the outlook for the full year is still ahead of previous management expectations.
Shares rose 8.24p to 263.24p.
Paddy Power signs deal with Kentucky
Flutter Entertainment, the owner of Paddy Power, has reached an agreement to settle a long-standing legal dispute with the state of Kentucky.
Kentucky has been suing PokerStars for more than a decade after accusing the site of letting Kentucky residents play at its site between 2007 and 2011. Flutter acquired PokerStars in its merger with the Stars group last year.
Flutter today agreed to pay $ 200million (Â£ 146million) to settle the case, alongside $ 100million already forfeited as bail. Kentucky agreed to stop suing Flutter in response.
The settlement is well below the $ 1.3 billion Flutter was ordered to pay last December by the Kentucky Supreme Court, following a lengthy legal battle. Flutter had challenged that decision in the United States Supreme Court, but sought a rectified settlement alongside this process.
Miners lead the charge of the FTSE 100
The FTSE 100 index got off to a stronger-than-expected start, rising nearly 1% or 67.82 points to 7,048.80 thanks to a strong rebound in mining stocks.
Shares of BHP, Anglo American and Antofagasta have fallen sharply in recent weeks due to lower prices for iron ore and copper. However, the trio jumped 4% today in hopes that Chinese real estate group Evergrande, which triggered a sharp drop in the market on Monday, will strike a deal on a bond interest payment with imminent maturity.
There were no surprises to discover Entain atop the FTSE 100 riser chart, with the owner’s Ladbrokes shares up 9% or 197p to 2,458p after confirming details of a buyout approach. .
The share price remains well below the 2,800p offered by DraftKings, in part because the bulk of the US company’s proposal is in stocks and also because of the veto potential of Entain’s US partner, MGM Resorts.
Watch the dots
Today’s Federal Reserve statement will not only be closely watched to determine when the central bank may begin to cut back on economic support.
The dot chart, which plots the timing of rate hikes or cuts, could trigger a further rally for the US dollar if it shows more Fed members shifting their expectations of interest rate hikes in 2022 to from 2023.
Jeffrey Halley of Oanda said: âWe might not get a lite temper tantrum from tapering comments, but we could from a more hawkish point plot. I have long given up hope that US bond yields would react significantly, but we may see a further extension of the US dollar rally and stocks and commodities are unlikely to have a good day in the office.
At the June meeting, seven points indicated a take-off in rates in 2022, so an increase could also be interpreted as a signal of a faster decrease.
Michael Hewson, CMC Markets, added: âThe problem given the risks emanating from the events in China is whether the Fed is taking a less hawkish stance in order to buy time until the situation gets worse. Claire. “
Investors on the sidelines
The week has been volatile so far in the London market, with contagion fears on Monday triggered by heavily indebted Chinese real estate company Evergrande, followed by Tuesday’s recovery and a rise of more than 1%.
The FTSE 100 index is expected to open 10 more points at 6,991, although this more likely reflects investors’ reluctance to commit new money ahead of big statements from the US Federal Reserve later today and the Bank. from England tomorrow.
Investors will be looking for clues as to when the Federal Reserve will begin to reduce its economic support, possibly as early as December.
Asian markets posted modest losses overnight, suggesting sentiment may level off after the turmoil at the start of the week.
Pret A Manger promotes improved trade in London and plans expansion
News from unlisted hospitality company: Pret A Manger is looking to open more UK locations.
Boss Pano Christou has called the last fortnight in London a “turning point of sorts” in terms of a business rebound after the pandemic, and his company is planning 200 more branch openings in the UK.
The sandwich chain’s City stores are now trading at more than 70% of their pre-pandemic levels, and much of that growth has occurred in recent weeks.
The improved sales will be a relief after the number of customers fell during the pandemic, with Pret A Manager permanently shutting down around 30 locations last year.
Accounts filed this week at Companies House will show revenue for 2020 to be Â£ 299million, up from Â£ 708million a year earlier.
Read the full story here.
Ladbrokes owner reflects on DraftKings approach
That’s a significant 46% premium over Monday night’s closing price, but DraftKings faces a significant hurdle at Entain’s U.S. partner MGM Resorts International, which took its own takeover approach earlier. during this year.
DraftKings’ latest proposal, which follows an earlier Â£ 25 per share approach, offers FTSE shareholders 100,630 pence in cash, with the remainder coming from new Class A ordinary shares of DraftKings.
Entain said: âThe Entain board will carefully review the proposal and a further announcement will be made if necessary. Shareholders are urged to take no action at this time. “