Markets close unchanged2007-06-08 16:53:58

Aviva eased 2.50 to 771 - the insurance giant announcing a joint venture in Turkey with Sabanci Holding.

The two firms are to merge their Turkish life and pensions businesses, as well as establish a bancassurance agreement with Akbank - Turkey's second largest privately owned bank - that'll involve selling life and pension products to Akbank's 5.9 million retail customers.

After 5 years, total annual pension contributions and life premiums are expected to exceed £500 million, with total assets under management of £2 billion.

The new venture means the creation of Turkey's largest pensions provider with a 25% market share and third largest life insurer with an 11% market share.

British Airways added 0.50 to 432 - the full service air carrier reporting operating profit of £602 million for the year to March 31st.

CEO, Willie Walsh, in an interview with Italian newspaper Il Sole 24, forecast that operating profit will rise to 10% of sales in 2008. This comes after the firm said as recently as a month ago that it expected revenues to come in at the lower end of its 2008 guidance of 5 to 6% growth.

Dobbies Garden Centres put on 145 to 1492.50 - the garden centres operator agreeing to be bought out by Tesco in a £155.6 million deal worth 1500p per share.

The offer represents a premium of approximately 28% to 1171.6p, being the average closing price per Dobbies share over the one month period ended May 29th, the business day prior to its announcement that it had been approached.

Signet hardened 0.38 to 110.13 - this despite the jewellery retailer reporting that growth in its core US market has slowed, due to the challenging retail environment.

The news came as the firm announced a fall in pre-tax profits for the 13 weeks through April 29th to 50.8 million, compared to 53.7 million the year before.

The firm derives 75% of its revenues from the US.

Lloyds TSB eased 2.25 to 566.75 - the banking giant reporting in a trading update that it has made a strong start to 2007 and is forecasting underlying profit to rise at least 10% in H1 as it squeezes costs and increases revenue.

Meanwhile, bad debts in its retail unit for the six months ended June are likely to be broadly similar to last year, when they were around £632 million.

Rexam

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2007-06-08 16:53:58 © Moneyextra.com