Shire soared to a record after two people with knowledge of the matter said AbbVie Inc. may make a higher takeover offer after the Dublin-based drugmaker rejected a bid of as much as 27.3 billion pounds ($46.5 billion). TSB Banking Group Plc jumped 12 percent on its first day of trading as Lloyds (LLOY) Banking Group Plc sold a 35 percent stake in the lender. FBD Holdings (FBD) Plc slipped 3.2 percent in Dublin after the insurer cut its profit forecast.
The FTSE 100 increased 17.09 points, or 0.3 percent, to 6,825.2 at the close of trading in London, for a weekly advance of 0.7 percent. The FTSE All-Share Index also added 0.3 percent today, while Ireland’s ISEQ Index slipped 1 percent.
“With a lack of general trend in Europe, the U.K. market is supported mainly by Shire’s advance,” said John Plassard, vice president at Mirabaud Securities LLP in Geneva. “Investors are pleased that this last episode of M&A confirms that the trend for more deals is keeping up, which has also pushed indexes higher so far this year.”
The volume of shares changing hands in FTSE 100-listed companies was 33 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.
Shire jumped 17 percent to 4,371 pence. AbbVie (ABBV) is considering raising its takeover offer and presenting its case to Shire’s shareholders, the two people said. AbbVie said late yesterday that Shire’s board turned down three takeover proposals, the latest for an indicative price of 46.26 pounds a share. The U.S. company said it made the first cash-and-stock offer in May and is no longer in talks with Shire. In a statement today, Shire said the offer undervalues the company, which aims to double sales by 2020.
Smith & Nephew Plc, which develops and sells medical devices, advanced 1.3 percent to 1,079 pence as a gauge of U.K. health-related stocks advanced.
TSB rallied 12 percent to 290 pence. Lloyds, the U.K.’s biggest mortgage lender, said it sold more than the 25 percent originally planned because of investor demand. TSB shares were priced at 260 pence apiece in the biggest IPO by one of the so-called challenger banks seeking to compete with Britain’s four largest lenders.
Fresnillo Plc (FRES) and Randgold Resources Ltd. rose 1.4 percent to 847 pence, and 1.7 percent to 4,812 pence, respectively. A gauge of U.K. mining companies climbed as gold headed for its longest run of weekly gains since March. Centamin Plc increased 2.2 percent to 64.1 pence.
British Sky Broadcasting Group Plc gained 2.3 percent to 891.5 pence. The London-based company will probably reach a wholesale agreement with BT Group Plc before an auction for Premier League soccer-broadcasting rights, likely in the first quarter of 2015, Polo Tang, an analyst at UBS AG wrote in a client note.
FBD Holdings declined 3.2 percent to 15.90 euros, after earlier slumping as much as 8.8 percent, after cutting its profit forecast because of more vehicle- and weather-related claims. The insurer predicted full-year 2014 earnings per share of between 70 cents and 80 cents, excluding any further exceptional events. FBD had estimated earnings per share of 120 cents to 130 cents.
J Sainsbury Plc (SBRY) fell 1.4 percent to 316.8 pence. The U.K.’s third-largest supermarket company plans to enter the discount grocery market by bringing Netto stores back to Britain. Sainsbury said it will join with Netto’s Danish parent company, Dansk Supermarked, to open 15 stores by the end of 2015, with the first outlet planned for the end of this year.
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