Updates from TSB, Carillion and MAN Group
The FTSE 100 lifted almost 45 points on Friday, ending the day at 6,858.2, up 0.66%. Winners included BA owner IAG, up 3.77% to 418.90p while Aberdeen Asset Management also gained 3.59% to 462p. Fresnillo took the biggest losses, down 2.08% to 775.50p. Unilever also took a 1.64% hit, dropping to 2632p.
The Dow Jones ended the week 207 points higher, up 1.2% at 16,924, helped by an interest rate clip from the ECB. %VIRTUAL-SkimlinksPromo%
We start with news from TSB that the price range for its IPO has been set at between 220 pence to 290 pence per Ordinary Share. The expected offer size is 125 million, representing 25% of TSB's existing shares in issue.
At the mid-point of the price range, TSB's market capitalisation would be approximately £1,275 million. Final pricing is expected to be announced on or around 20 June.
The valuation looks cautious given current IPO nervousness. TSB has more than 600 branches, 4.5m customers and around £23.3bn in deposits.
Next, hedge fund player MAN Group has agreed to buy Pine Grove Asset Management LLC , a US-based fund of hedge fund manager specializing in the management of credit-focused hedge fund portfolios with $1.0 billion of assets under management.
Approximately two thirds of Pine Grove's assets are from institutional investors, primarily US-based, with the remaining third from US high net worth individuals.
"Pine Grove," says MAN, "will enhance Man Group's presence in the US and add to Man Group's fund of hedge funds business, FRM." The move should help MAN diversify its revenues.
Lastly, Carillion's joint venture with Lafarge Tarmac (50:50) has been selected as one of the contractors to deliver the Medium Schemes Framework 2, which has a total value of approximately £260 million over a three-year period and an estimated value to the joint venture of £100 million.
There is the option to extend by a further year to June 2018.The framework will include the delivery of a wide range of projects on behalf of the partners, including the reconfiguration of highway layouts, construction of road and bridgeworks and resurfacing.
Carillion recently won a £1.7bn contract from the MoD with Amey, plus a new £100m Network Rail order.