M&A - The best investment game in town?

DRX. Currently languishing at position 112 it appears out of favour on the market's dim view of energy prices falling in a record warm winter that left high levels of gas storage across Europe.

A swell of private equity bid speculation saved the £2.7 billion group from demotion to the FTSE 250 last time round, but forced demotion now looks increasingly inevitable.

Into that slot will move the UK's largest house builder, Barratt Developments BDEV, which gains automatic promotion after the £2.2 billion take-over of Wilson Bowden. Its market capitalisation of £3.75 billion puts it at position 86.

Meanwhile, the Stefano Pessina/KKR group offer of 1139p per share for Alliance Boots AB/ will complete on June 26th, leaving another FTSE 100 slot up for grabs.

Elsewhere, Intercontinental Hotels IHG will go ex after announcing a 200p special dividend, due for payment on June 15th. This will cut its market cap by over £700 million and reduce its position from 77 to 86 in the blue chip index.

Finally, Kelda KEL,

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2007-05-18 11:47:15 © Moneyextra.com