Investors shrug off rate rise fears2007-06-20 16:55:07

J. Sainsburyadded 4.50 to 585.50 - Britain's third largest food retailer reporting slightly disappointing sales growth numbers in what amounted to its toughest quarter since CEO, Justin King, began the firm's turnaround 3 years ago.

Like-for-like sales - excluding fuel - were up 5.1% for the 12 weeks to June 16th - slightly below the 5.4% analysts had penciled in.

King meanwhile played down market speculation that the firm could now become a bid target, after a Qatari investment fund upped its stake to 25%, arguing the Qataris had always been supportive of the firm's business strategy anyway.

Lloyds TSB gained 3.50 to 578 - the banking giant yet again the subject of bid speculation - this time in the shape of SocGen, which some analysts now believe is giving serious thought to a bid.

DSG International eased 1.40 to 169.10 - the electrical goods retailer confirming it won't be entering the Russian market after indicating it will not be exercising a long-held option to buy 10% of privately-owned Eldorado by the end of the year. Instead it says it will return £100 million to shareholders in the form of a share buyback.

Meanwhile, the company reported a 5% fall in underlying full-year pre-tax profits to £295.1 million on a 14% increase in sales to £7.93 billion.

Thus fell 11.13 to 185.88 - United Utilities announcing it's to sell its entire 22.63% stake in the business telco provider by way of a placing of 41.428 million shares.

The utility had previously identified its stake in THUS as non-core to the group as it increasingly focuses on its core skills of managing water, wastewater, electricity and gas networks.

Renovo Group surged 26.75 to 213.75 - the drugs firm announcing it has signed an exclusive licensing agreement with Shire to develop and commercialise Juvista, Renovo's lead drug for the prevention and reduction of scarring in connection with surgery.

Juvista is currently in late phase 2 development with phase 3 trials anticipated to commence in mid 2008.

Renovo will receive an initial payment of 125 million, consisting of a 75 million upfront payment and 50 million equity investment in the Group at a price of 200p per share - this equating to 6.7% of the total outstanding shares in the Company immediately after the issue.

On acceptance of filing with the US FDA, Shire will pay Renovo 25 million and on FDA approval, up to US150 million, depending on the characteristics of the approved product labeling.

Burani Designer Holding

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2007-06-20 16:55:07 © Moneyextra.com