Updates from Vodafone and Bunzl


More pressure on the FTSE 100 on Friday, down -0.40% to 6,527.8. Aberdeen Asset Management was the biggest faller, down -3.11% to 365p with International Consolidated Airlines Group down -2.68% to 421.30p. Fresnillo though saw a 2.89% jump to 925.50p. Sainsbury's also saw a +2.85% recovery, to 313.60p.

The pessimism extended to the Dow Jones, down -0.27% to 16,065.6.

We commence with confirmation from Vodafone that it has agreed to acquire Spanish player Ono for €7.2 billion (£6.0 billion) on a debt and cash free basis. Vodafone claims Ono is the market leader in broadband "with has the most innovative pay-TV service in Spain".

Vodafone expects to achieve cost and capex synergies of €240 million (£200 million) before integration costs by the fourth full year post completion, equivalent to a net present value of approximately €2.0 billion (£1.7 billion) after integration costs it claims.

"This transaction - together with our fibre-to-the-home build programme - will accelerate our ability to offer best-in-class propositions in the Spanish market," says Vodafone chief exec Vittorio Colao.

Next, acquisition news from Bunzl that it has acquired Lamedid Comercial e Servicos Ltda in Brazil. Based near São Paulo, Lamedid is a supply and distribution player throughout Brazil of own label medical and healthcare consumable products.

Bunzl, in a statement, says these are directed at hospitals, clinics and laboratories as well as to distributors. Revenue in the year ended 31 December 2013 was R$48.3 million (c.£12 million).

Commenting, Michael Roney, Chief Executive of Bunzl, says Lamedid has significantly increased the size of its healthcare business in Brazil. "The two businesses complement each other and together will enable us to extend our product offering in this important market."

We end with a Moroccan update from Cairn Energy. Specifically its JM-1 well, offshore Morocco, where operations commenced in January 2014.

Carin says the JM-1 well drilled to evaluate Upper Jurassic and Middle Jurassic objectives reached a total depth of 3,711m TVDSS, but has now been plugged and abandoned without testing.

Cairn says the next well in its exploration programme is Fan-1, located in the Sangomar, Sangomar Deep and Rufisque blocks (Cairn 40%, Operator) offshore Senegal.