Updates from Wonga, Salamander Energy and Rolls-Royce
The FTSE 100 took another small dent on Thursday, down 17.7 points to 6,678.9. Johnson Matthey was a stand-out performer though, accelerating 6% to 3341p on a positive earnings outlook, also boosted by new green car regs. BabcockInternational was also up strongly, surging 5.9% to 1184p as investors warmed to its bid pipeline. RioTinto shares though dipped more than 2.6% to 2,865p.
Things remained in positive territory Stateside, with the Dow Jones climbing more than 33 points to 17,719 helped by a 4.6% boost from Intel thanks to strong 2015 guidance and a dividend hike.
A quiet day on the corporate earnings front. Asian oil operator SalamanderEnergyand OphirEnergyhave proposed deal terms after a tumultuous month with Spain's CESPA quitting the scene.
Shareholders are being offered 0.5719 Ophir shares for each Salamander share on the basis of Ophir's share price of 202.7 pence on 24 October 2014.
"The combined business," the two companies claim, "would have a strong balance sheet, enhanced operating capability across the core operating geographies of Africa and South East Asia, and deep expertise across key technical and commercial functions."
Rolls-Royce says it has won a $5bn order for its Trent engines and long-term service support from Delta Air Lines to power 50 new Airbus planes. An important deal given that US carriers have modest Rolls-Royce and Airbus presence.
Trent XWB engines will power 25 Airbus A350s and Trent 7000 engines will power 25 Airbus A330neo aircraft. The move though was closely fought from Boeing, whose 787 Dreamliner was in the deal picture.
"It is further evidence," says Rolls-Royce boss John Rishton, "of the success of the Trent XWB in the market and represents a powerful vote of confidence in our newly-launched Trent 7000."
Finally Wonga interim chief exec Tim Weller has stepped down after just five months in the job. Weller was an ex chief financial office at the company. Wonga has faced intense scrutiny in the last year over the payday loan industry loan rates.
Wonga recently said it was writing off more than £200m of debts for 330,000 customers as well as ditching interest rate charges for 45,000 clients. It has also drawn huge criticism for sending letters to customers from fake law firms.
"This was a mutual decision," says the company, "following a comprehensive handover, and will ensure clear leadership in the weeks and months ahead."
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