AIM listed healthcare business Alliance Pharma saw its share price surge this morning following news that it had agreed buyout terms with an existing investor. The deal offers shareholders 62.5p per share in cash, a 41% premium to last night’s closing price. Shares in Alliance Pharma currently trading 38% up, so the bulk of that premium has already been priced in.
Supermarket group Sainsburys continued its sell off in early trade on Friday, taking losses for the week to more than 7% following the publication of its latest trading update. Whilst noting market share gains for a fifth consecutive Christmas period, concerns are running high regarding margins being squeezed, sluggish non food slaes along with rising labour costs, something that has been exacerbated by the company’s decision to reward staff with a 5% pay increase. The Sainsbury Share price is down by just over 2% at 9am.
Shipping services provide Clarkson was leading the FTSE-250 in early trade on Friday, in response to a trading update announcing modest increase in profit forecasts. Full year pre tax profits, which will be confirmed in March, are now expected to be no less than £115m. The Clarkson share price is trading almost 9% higher shortly after the open.
Most read news on Investegate this morning
Recommended Acquisition of Alliance Pharma plc - - Alliance Pharma (APH)
Trading Statement - - Sainsbury (J) (SBRY)
Transformational Farm-out Agreements - - Tower Resources (TRP)
