VODAFONE has been quick to scotch reports that the Russian conglomerate Alpha Group is interested in buying a 20% stake in the mobile phones giant.
It had been claimed that Alpha, the Altimo mobile phone operator, was prepared to stump up around Pounds 15 billion for the stake. But Vodafone, which does not normally comment on market rumours, said there was no substance to the story and emphasised that it was not in talks with Alpha.
The Russian company is also believed to have had talks about asset swaps with France Telecom and Deutsche Telekom. At the last count, Vodafone was valued at Pounds 71.4 billion.
During the past couple of weeks, Vodafone has been the subject of speculative buying amid claims it could soon become the target of a break-up bid by private-equity money. Its shares came off their high for the year, sliding 3/4p to 1343/4p.
Fresh speculative buying continued to drive Northumbrian Water higher. The price extended yesterday’s late run with a gain of 6p to 3081/2p amid further talk that Kelda, the old Yorkshire Water, was lining-up a bid as part of a further contraction of the water industry. Northumbrian is considered the cheapest and, therefore, the most vulnerable company in the sector to a takeover. Kelda shares fell 2p to 870p.
Only last month,Australian bank Macquarie paid German utilities group RWE Pounds 8 billion for Thames Water which followed Westpac’s acquisition of South East Water.
Brokers say some fancy prices are being paid for the water companies despite yesterday’s warning from regulator Ofwat that they should not expect an easy ride in the next round of pricing.
A poor performance overnight by the Dow in the face of further evidence of US economic slowdownput the skids under investors in London today. Prices gave back yesterday’s gains as the FTSE 100 index retreated 27.4 to
The City gave the thumbs-up to third-quarter numbers from Unilever, up 31p at 1325p, and oil explorer BG Group, 61/2p better at 6791/2p, but ICI lost 6p to 388p after failing to meet expectations.
A rise in sales despite the introduction of a smoking ban at its chain of pubs lifted JD Wetherspoon 181/4p to 583p. Broker Dresdner Kleinwort responded by raising its recommendation on the shares from hold to add.
Treasury bonds were spurred higher in New York overnight by further evidence of a slowdown in the US economy, but share prices continued to slide. Investors were derailed by the Institute of Supply Management’s latest manufacturing index, which showed a sharp drop. Housing and construction activity has also showed signs of slowing.
In Tokyo today, the Nikkei 225 closed at its lowest for almost a month, down 25.24 at 16,350.02 as investors became increasingly concerned about the slowdown in the US economy – Japan’s biggest export market. Investors also appeared reluctant to open new positions ahead of the extended weekend break and the American payroll numbers due tomorrow.
In Hong Kong, share prices were racing to a new record high, the third in less than a week. The Hang Seng index ended the morning session up 50.54 at 18,504.19.
Source- blackenterprise Wireless Mobile Telecom