Bid talk spurs Footsie2006-06-28 17:01:17

EMI put on 23 to 306.75 - the music publisher rejecting a £2.5 billion from rival, Warner Music.

The initiative from Warner comes as EMI - best known for having Robbie Williams and Coldplay on its roster - has sweetened an earlier 28.50 per share offer for Warner to 31. Or the equivalent of £2.5 billion.

The two-way takeover battle has significant implications for the music industry. Whether EMI or Warner Music is ultimately successful any merged entity will likely be shrunk. The overall market itself will be left with just 3 major players

Corus added 7.50 to 435.75 - the Anglo-Dutch steelmaker the subject of renewed bid speculation - this time in the form of Russian steel firm Severstal.

Severstal tried recently to merge with Luxembourg's Arcelor. But this attempt was derailed after Arcelor threw in its lot with rival Mittal - headed-up by Britain's richest man Lakshmi Mittal.

Word is that a consortium led by Severstal will now make a 520p per share offer for Corus.

Radstone Technology firmed 2 to 266.50. Investment bank UBS has cut its 2007 EPS estimate for the computer solutions provider by 2% to 19.04p and its 2008 estimate by 7% to 20.29p.

UBS argues that whilst the firm's December profits warning may now be behind it, the fact remains that the majority of the firm's sales are in US dollars and its cost base is largely sterling denominated. Hence, the firm is exposed to currency fluctuations among other issues.

That said, UBS has reiterated its 'neutral' rating and 300p price target

Hays gave up 14 to 137.25 - the specialist recruitment company confirming that trading has been in line with expectations.

Net fees in the second half of the financial year are expected to be approximately 14% ahead of the same period last year. Both temporary and permanent placement fees are ahead of the same period last year.

In the UK & Ireland, the business is expected to grow net fees at approximately 7% for the second half of the financial year, with growth across each of the major disciplines.

In Australia & New Zealand, H2 net fees are expected to be approximately 33% ahead of the same period last year, with double-digit growth achieved across all specialisms in the region.

Meanwhile, in Continental Europe & Canada, H2 net fees are expected to be approximately 39% ahead of the same period last year.

SABMiller firmed 7 to 941 - investment bank ING cutting the brewing giant's share price target from 1100p to 1000p, but reiterating its 'hold' rating.

Citing the recent 15-20% depreciation of the South African Rand against the US dollar ING argues that this will have a negative impact on the firm's bottom line.

ING has also cut SABM's 2007 EPS estimate from 1.15 to 1.08.

Indago Petroleum

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

Back

2006-06-28 17:01:17 © Moneyextra.com