Market Report: Petroceltic chairman rejects activist Worldview’s takeover bid

Comments Off on Market Report: Petroceltic chairman rejects activist Worldview’s takeover bid

Hollywood script-writers short of an idea or two would do worse than look for inspiration on AIM, London’s junior stock market.

The colourful tale of Petroceltic would certainly fit the bill — swashbuckling explorer looks for oil in the high seas, gets captured by activist investor, which turns into a two-year war.

The latest scene is still playing out, but suffice it to say shareholders have accepted there will be no happy ending.

Through his vehicle Skye Investments, Petroceltic’s chairman Robert Adair, who is the Irish oil explorer’s second-largest shareholder with a 19% stake, said he would reject Worldview’s audacious 3p-a-share takeover bid worth £6.4 million, which was made when the price was 18p.

Adair said Angelo Moskov’s investment firm, which already owns 29%, would have to increase its bid “significantly” to be taken seriously, telling the Standard: “Worldview tends to be a rule unto itself and lives in an alternative reality.” 

Investors were encouraged that the cut-price deal would not go ahead as shares in the company, which is seeking funding from its lenders, rose 0.94p to 7.74p.

Talking of Hollywood, 2015 was a blockbuster year for the film industry, but analysts are predicting 2016 will be a different story.

UBS slapped a sell rating on Cineworld, which earned the FTSE 250’s version of the Razzie award as the cinema operator was the mid-cap index’s worst performer, down 30p or 5.6% at 502p. 

The Swiss broker said the film slate for this year was skewed towards children’s films, such as the BFG, which are cheaper to view.

The BFG on MovieBites

On the wider market, it was a less than box-office day for traders, but the FTSE 100 managed to climb 23.84 points to 6154.30 as miners propped up the blue-chip index thanks to a rise in industrial metals prices.

Schroders found itself at the bottom of the FTSE 100 as analysts took the axe to their forecasts, a day after its annual results for 2015. Citi cut its rating to neutral and forecasts a 5% fall in earnings this year, causing the shares to slide 91p to 2647p.

BT shrugged off Deutsche Bank’s concerns about the business, climbing 2.7p to 477.95p as Goldman Sachs called its value “compelling” and restored its Buy tip.

Dart Group, which owns the Jet2 airline, flew 34.5p higher to 586p as it revealed annual operating profits would be slightly better than expected after lower-than-anticipated losses during the winter season.

LGO Energy, the Trinidad oil firm formerly known as Leni Gas and Oil (after its founder, Australian entrepreneur David Lenigas), edged down 0.06p or 15% to 0.34p when it said it would require “substantial new funding” to repay its creditors.

Source Article from

March 6, 2016 |
Copyright © 2019 All Rights Reserved.
WordPress Directory Theme

Classified Ads Software

We use cookies to ensure that we give you the best experience on our website.
More about our cookies
Skip to toolbar