logo-loader

FTSE 100 news summary: AstraZeneca, Compass Group, 3i, Rolls-Royce, Vodafone, SABMiller

Published: 21:34 25 Jun 2011 AEST

no_picture_pai

 

Caterer Compass Group (LON:CPG) has acquired Shing Hin Catering Group Limited in Hong Kong from Au-Yeung Kwan. In 2010, the business generated revenues of HK$159.4 million (£12.7 million).

Compass sees the acquisition as an opportunity to grab a bigger share of the fast growing Chinese market.

Broker Nomura said this week that SABMiller’s (LON:SAB) bid for Foster’s has given it no reason to change its “reduce” recommendation for the stock. Furthermore, Nomura indicated it could cut SABMiller’s target price if it ends up acquiring the Australian brewer, depending on the synergies that will result from the deal.

AstraZeneca (LON:AZN)
has agreed to sell its Astra Tech business to DENTSPLY for about US$1.8 billion, the company announced this week. Astra Tech posted revenues of US$535 million in 2010, while its earnings for the year reached US$105 million. The sale of Astra Tech is expected to be completed in the second half of the current year.

“Following a comprehensive strategic review, we believe this transaction represents an excellent outcome for AstraZeneca shareholders,” said chief executive of AstraZeneca David Brennan.

Weir Group (LON:WEIR)
this week announced the acquisition of a 60 percent interest in the South Korean valves business formerly operated by HIM Tech. The valves manufactured by the business are supplied to major South Korean engineering contractors for international projects.

In the year to 31 December 2010, HIM Tech's valves business recorded sales of US$10.5 million.

The valves business has been transferred into new Korean company Weir International. Weir will buy 60 percent of Weir International.

Private equity and venture capital firm 3i Group (LON:III) is “an attractive choice for deep value players”, according to Citigroup in its latest research note. Citi said that 3i is attractive because of its undervalued portfolio of assets combined with a conservative balance sheet and credible net asset value (NAV) growth prospects. “Furthermore, given its high beta, 3i is also well positioned to benefit from a potential recovery in equity markets,” added the investment bank.

Broker Nomura said this week that SABMiller’s (LON:SAB) bid for Foster’s has given it no reason to change its “reduce” recommendation for the stock. Furthermore, Nomura indicated it could cut SABMiller’s target price if it ends up acquiring the Australian brewer, depending on the synergies that will result from the deal.

Temporary power provider Aggreko (LON:AGK) now expects its first half revenue (excluding fuel) to rise 9 percent year on year. Trading profit is expected to be similar to 2010, representing 20 percent growth in revenue and 17 percent growth in trading profit on an underlying basis.

Rolls-Royce (LON:RR)
has won a contract worth up to US$2.2 billion from TAM Airlines of Brazil. The deal will see Rolls-Royce provide Trent XWB engines for Airbus A350 XWB aircraft and includes a 12 year agreement for Rolls' TotalCare long-term services support. Rolls-Royce has also announced that it has signed an agreement with Airbus to be the exclusive engine provider for an enhanced version of the Airbus A350-1000 aircraft.

It will boast an outstanding payload and long range, the best economics, and 25 per cent lower fuel burn and CO2 emissions than its nearest competitor, said chief operating officer of Airbus Fabrice Brégier.

JP Morgan Cazenove says concerns raised by Dutch KPN's profit warning and the ongoing deterioration in southern European wireless trends, have led Vodafone's (LON:VOD) shareprice to go back to 160 pence - an attractive entry point for investors. Analyst Akhil Dattani reiterated his "overweight" rating for Vodafone  targeting a price of 225 pence in a note this week.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

5 hours, 47 minutes ago