US sub-prime woes hit Footsie2007-07-18 16:52:07

J Sainsbury gained 5.50 to 591 - the food retailer confirming it has been the subject of an approach.

Press reports had previously said that Delta Two, which already owns about 25% of Sainsbury's, is prepared to offer 610p a share for the rest of the company. The BBC meanwhile reported that Delta Two has submitted a 600p per share offer.

Delta Two confirmed it is in preliminary talks but said that no firm decision had yet been made.

Imperial Tobacco put on 35 to 2236 - the board of Spanish rival, Altadis, confirming that it's recommending shareholders accept Imperial's proposed cash offer of 50 euros per share giving an enterprise value of 16.2 billion euros: £11.0 billion.

The offer represents a multiple of 14.2x Altadis' 2006 EBITDA and a premium of 32% over the Altadis closing share price on March 12th 2007, when an approach was first mooted.

GlaxoSmithKline fell 30 to 1270 - the drugs giant's diabetes drug Avandia again coming under attack - this time in a new study by German researchers.

The 8000 patient study found little evidence that GSK's second-biggest product improved the quality or length of diabetics' lives and concluded it could actually worsen complications arising from the disease.

Tate & Lyle softened 13 to 587 - the sugar and sweeteners manufacturer announcing it would buy back up to £275 million of its shares. The news, which came as the firm announced flat Q1 operating profit at constant exchange rates, was at the top end of analysts' expectations.

Meanwhile, the company also said it expects to get around 310 million euros £208 million from the sale of half its European starch and sweeteners business.

Talks are at an advanced stage with Syral, a subsidiary of France's Tereos. Expectations are that the deal will complete by end-September.

The disposal will lead to an exceptional loss of about £20 million after restructuring.

JD Wetherspoon rose 57.75 to 612.75 - the pubs operator reporting in a trading update that for the first 11 weeks of Q4 to July 15th 2007 like-for-like sales increased by 4.9%.

Year-to-date 50 weeks to July 15th 2007 like-for-like sales increased by 5.8%, with overall company sales up by 6.9%.

Looking ahead, the company said the outlook for 2008 involves 'more uncertainty than usual', in the light of the smoking ban now across the whole of the UK in pubs.

Cost inflation is anticipated to be in line with expectations, with increases in interest rates and minimum wages offset by a reduction in energy costs.

Provided these sales patterns continue, a reasonable outcome is anticipated, it said in a statement.

EMI shed 4.75 to 262.25 - Warner Music Group confirming it has decided not to make an offer for its music publishing rival.

EMI agreed to a £2.4 billion takeover from private equity group, Terra Firma, in May.

News that Warner Music has thrown in the towel will disappoint investors who had been hoping for a bidding war between Terra Firma and Warner.

Black Rock Oil & Gas

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2007-07-18 16:52:07 © Moneyextra.com