Early rally runs into sand2006-11-22 16:58:13

London Stock Exchange gained 16 to 1317 - news emerging that 80s New York corporate raider, Samuel Heyman, has built up an 8.8% stake.

Heyman's move raised expectations that US exchange, Nasdaq, which now has a 28% stake, will need to make a higher offer for the LSE than the 1243p per share already on the table.

ICI surged 35.50 to 422.50 - the specialty chemical group's share price climbing to a 5-1/2 year high after it agreed to sell its Quest flavours and fragrances business to Swiss rival, Givaudan, for £1.2 billion.

Around £70 million of the £1.2 billion will be used to provide for deal-related tax and costs. Of the balance, approximately £230 million will be used to reduce the firm's post-retirement benefit deficits and around £900 million will be used in the near term to eliminate net debt.

DSG International gave up 16.25 to 202.25 - the electrical retailer beating analysts' estimates as it reported a 5% increase in like for like sales over the 28 weeks to November 11th. Total sales were up 14% - largely due to strong sales of flat panel, high definition TVs and laptop computers.

The firm noted however that margins had been hit by a weak performance in Italy - a market that generates around 10% of total group sales.

Underlying group pre-tax profits are forecast to be in line with expectations.

AstraZeneca eased 9 to 3001 - the drugs giant reporting Wednesday that it expects 2006 EPS to be at the lower end of its 3.85 to 3.95 forecast range. This follows the launch, Tuesday, of a copycat version of AZN's heart drug, Toprol, by Novartis unit, Sandoz.

AZN meanwhile has sealed an agreement with Par Pharmaceuticals to distribute an authorised generic version of Toprol in the United States.

Kensington slumped 96 to 809 - the mortgage broker warning that despite it being on track to deliver an improved performance from H1 in the areas of arrears, losses and overall bad-debt charges, the value from new business lending in the UK first-charge mortgage market has continued to decline as competition has reduced margins and lower income is being received from early redemption charges.

As a result, pre-tax profits for 2006 are likely to be within analysts' expectations, but towards the lower end of the range.

Land Securities

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

Back

2006-11-22 16:58:13 © Moneyextra.com