Shares bounce back2007-06-11 16:52:44

Rexam gave up 16.50 to 495 - the consumer packaging company confirming the placing of 58.355 million new ordinary shares, representing 9.99% of the firm's existing issued share capital, with institutional investors.

The £300 million cash raising exercise, along with up to £500 million being raised through the issuance of subordinated bonds, will be used to fund its 1.83 billion purchase of US-based O-I Plastics.

The purchase of the Owens Illinois unit is seen as a useful addition for Rexam in what is a 4 billion US plastics packaging market. And one that's growing at 7% p.a. currently.

Barclaysput on 11.50 to 734 - U.S. hedge fund, Atticus Capital, putting pressure on the retail banking giant not to pursue its £43 billion offer for ABN AMRO Bank.

In a letter to Marcus Agius, Barclays chairman, Atticus said it was concerned the bank will be issuing shares to buy "an inferior business, in an auction at inflated prices."

Atticus currently has an interest of around 1% in Barclays.

Avis Europe closed unchanged at 55.50 - the car rental firm announcing it has identified potential financial malpractice in its Portuguese subsidiary.

If substantiated, the firm reckons this will result in an overstatement of the Group's net assets as at December 31st by approximately 3 million euros.

It is also anticipated that pre-tax profit for the current year could be impacted by approximately 3 million euros, in addition to the costs of the investigation.

The firm says it has suspended certain of its management in Portugal, pending the outcome of the investigation.

Centrica rose 6.75 to 366.25 - reports suggesting and subsequently denied that it may be the target of Russian state gas operator, Gazprom.

Deputy CEO of Gazprom, Alexander Medvedev, said at an economic conference in St Petersburg over the weekend that it will announce a purchase in Britain "in the nearest future.''

Circle Oil put on 1.50 to 26.50 - the oil explorer announcing the signing of an unsecured Convertible Loan agreement for 30 million with Kuwait-based, KGL Petroleum Company.

The loan also has an attached option whereby KGL can subscribe for an additional 15 million shares in Circle Oil at a price of 50p per share, exercisable during the first 3 years of the loan.

The signing of this agreement forms part of Circle's 3 year funding strategy to cover its work programme, including the development costs of commercial discoveries in Morocco and Tunisia.

Dobbies Garden Centres

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2007-06-11 16:52:44 © Moneyextra.com