Newspaper article The Evening Standard (London, England)

Barclays Sale Spurs Fund Managers

Newspaper article The Evening Standard (London, England)

Barclays Sale Spurs Fund Managers

Article excerpt

Byline: Sarah Marks market round-up

a flurry of late-afternoon rumours stoked up by Barclays' mouthwatering deal with Blackrock propelled interest sky high in other fund managers.

Man Group's popularity rose throughout the day until it emerged, 171/4p higher at 283p, at the top of the ftse leader board. as soon as one unfounded rumour was quashed -- those in the know say Man has now denied rumours of an approach by Goldman sachs -- another popped up. traders are now claiming Man is looking to sell its stake in Mf Global.

With trading volumes noticeably thin, the recent rally ran out of steam despite a flurry of optimistic economic statistics from the us and asia. sustained selling of mining and oil stocks wiped out strong performances elsewhere and the ftse 100 was down 18.33 points to 4443.54. in the us the Dow j ones opened down 28.95 points at 8741.97.

punters willing to believe the worst of the recession is over might cast a glance at advertising giant WPP.

Goldman sachs has added it to its conviction buy list on the grounds that sales have fallen as low as they are going to get. in terms of new business Wpp, up 11p at 4361/2p, has not been as successful as rival publicis in recent weeks, but jones calls Wpp's performance in May "solid". from an investment point of view, Wpp has lagged the market by 20% during the recent rally and on a price/earnings ratio is 20% cheaper than publicis and 30% better value than Omnicom.

Mining group Vedanta was the footsie's main casualty today as the prospect of a major share dilution loomed into view via a $1 billion ([pounds sterling]606.2 million) convertible bond, launched today.

Vedanta, down 118p at 1629p, needs the money to clean up its substantial collection of minority holdings in subsidiaries. shareholders say the messy web of assets is responsible for a good deal of the 75% fall in attributable profits last year.

jpMorgan is sole bookrunner on the offering which could be increased by a further $250 million. the convertible bonds are expected to have a coupon of 4.5%-5% and the conversion price is estimated to be at a premium of 35%45%. …

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