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FTSE 250 movers: Morrisons surges on takeover bid

By Michele Maatouk

Date: Monday 21 Jun 2021

FTSE 250 movers: Morrisons surges on takeover bid

(Sharecast News) - London's FTSE 250 was up 0.3% at 22,381.56 in afternoon trade on Monday.
Morrisons surged to the top of the index after saying it had rebuffed an unsolicited £5.5bn bid over the weekend from the US private equity firm Clayton, Dubilier & Rice, which had offered to pay 230p a share in cash. Marks & Spencer was also in the black.

Neil Wilson, chief market analyst at Markets.com, said: "There is a lot of private equity money sniffing around the UK as valuations are low - we knew this before the pandemic. But its market share of the UK grocery market, its growing wholesale business and its existing tie-up with Amazon surely means it is not impossible the US tech giant will make an offer.

"However, if Amazon were interested, you'd assume that an offer would have come by now. A PE bid seems more likely and ultimately may be the best way to unlock value for shareholders who've gone through a lot but ultimately not seen any appreciation in years (before today). Shares in Tesco and Sainsbury's were up strongly partly on the read-across, partly on expectations that a PE buyout would see MRW less able/willing to compete."

Outsourcer Capita jumped higher after saying it was on track to post revenue growth for the first time in six years as trading in the first half of 2021 improved. It also announced the sale of its 51% stake in Axelos, a joint venture with the British government's Cabinet Office, to PeopleCert International for £183.6m in cash.

FTSE 250 - Risers

Morrison (Wm) Supermarkets (MRW) 236.00p 32.25%
Capita (CPI) 40.00p 6.27%
Energean (ENOG) 768.00p 3.78%
Pets at Home Group (PETS) 456.60p 3.12%
Elementis (ELM) 147.90p 2.78%
National Express Group (NEX) 274.60p 2.62%
Grafton Group Ut (CDI) (GFTU) 1,115.00p 2.39%
Beazley (BEZ) 313.70p 2.02%
Marks & Spencer Group (MKS) 151.50p 1.95%
Capital & Counties Properties (CAPC) 169.70p 1.92%

FTSE 250 - Fallers

Auction Technology Group (ATG) 1,184.00p -8.36%
Dr. Martens (DOCS) 398.00p -5.78%
PureTech Health (PRTC) 344.50p -4.17%
Genus (GNS) 4,872.00p -4.09%
Indivior (INDV) 147.10p -3.92%
JPMorgan Japanese Inv Trust (JFJ) 606.00p -3.35%
Syncona Limited NPV (SYNC) 213.00p -3.18%
Helios Towers (HTWS) 164.40p -3.18%
Ultra Electronics Holdings (ULE) 2,152.00p -3.15%
Morgan Sindall Group (MGNS) 2,165.00p -3.13%


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