News

Leading shares are a little off the top but risers still outnumber fallers by four to one among Footsie constituents.

Insurers are wanted following an FT report which indicated German insurance giant Allianz is looking to buy a UK insurance group. Admiral, Standard Life, Royal & Sun Alliance and Aviva lead the sector higher.

Royal Bank of Scotland is also going well on a report in the Telegraph that private equity firm Texas Pacific Group is considering a bid for its insurance arm. "It is very premature and no decision has yet been made to bid for it, but TPG is interested," the report said.

Rio Tinto is ahead after its chairman told an Australian paper it might consider a break-up to thwart BHP Billiton's bid.

Next is the best performing blue-chip in a buoyant retail sector which also sees Marks & Spencer going well.

Barclays is up despite the widely reported departure of Paul Idzik, chief operating officer and one of the key lieutenants in efforts by John Varley, chief executive, to overhaul the bank's culture and management.

Wolseley and Experian, with their huge exposure to the US housing market, are both enjoying a rare spell in the sun, buoyed by the strength of the dollar.

With the market advancing briskly defensive stocks such as British Energy, United Utilities and British American Tobacco are getting the cold shoulder.

Property group Capital & Regional has slipped a little further after yesterday's rout on worries concerns that its flagship fund had breached its banking covenants. After the market closed the company acknowledged the "market concern around the capital structure of the Mall Fund".

Rentokil shareholders face the prospect of a dividend cut after its problems within its parcels business, City Link, hit it hard in the first quarter. Revenue rose by 6.6% to £553.6m but profits slumped by 59% to £14.6 m after a loss of £15.4m at City Link. Excluding City Link, revenue rose by 8% and adjusted operating profit up 0.7%. Rentokil added that its current dividend is not sustainable and will be reviewed.

Reinsurance broker Benfield expects 2008's trading result to be marginally below 2007 due to currency moves and a softening reinsurance market. "Benfield has not been materially affected by the global credit crisis, and although it has had an adverse effect on some reinsurers, the overall impact on the global reinsurance market has been muted," it said in a statement.

Aircraft and car parts maker Hampson Industries has conditionally agreed to buy two US firms for up to $314m (£158.2m) and raise around £65m from a placing and open offer to part fund the acquisitions.

Best of the Best, which displays luxury cars as competition prizes in airport terminals, said profit and revenue for the year will be below expectations.

Business transformation consultancy firm Axon said its Axon Solutions unit has bought EnterSys, a leading provider of SAP consulting services to the oil, gas & chemical sector in North America, for an initial consideration of $7.5m in cash.

Deuxmil Marine rocketed higher Friday as it conditionally agreed to buy YCO for €9m (£7m) in cash plus €6m (£4.7m) in shares and raise £8.2m via a placing to fund the purchase and cover costs.

Philippine-focused oil and gas group Forum reported slightly higher pre-tax losses but said its working capital position is stronger than last year while the Galoc development remains on schedule.

Vehicle tracking systems specialist Minorplanet has rejected a written proposal from a third party but said it has agreed to talks with the party.

FTSE 100 - Risers
Next (NXT) 1,223.00p +6.63%
Marks & Spencer Group (MKS) 400.50p +5.12%
Wolseley (WOS) 523.50p +4.70%
Admiral Group (ADM) 894.50p +4.07%
Royal & Sun Alliance Insurance Group (RSA) 139.90p +3.94%
Kazakhmys (KAZ) 1,674.00p +3.65%
Thomas Cook Group (TCG) 265.50p +3.61%
Experian Group (EXPN) 397.75p +3.58%
Standard Life (SL.) 261.50p +3.46%

FTSE 100 - Fallers
British Energy Group (BGY) 743.50p -1.91%
Thomson Reuters (TRIL) 1,592.00p -1.42%
Tate & Lyle (TATE) 520.50p -1.33%
Johnson Matthey (JMAT) 1,988.00p -1.29%
United Utilities (UU.) 717.50p -1.17%
BG Group (BG.) 1,246.00p -1.11%
G4S (GFS) 229.75p -1.08%
John Wood Group (WG.) 430.75p -0.81%
British American Tobacco (BATS) 1,913.00p -0.67%
WPP Group (WPP) 620.50p -0.56%