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Market report: IWG takeover approach, Shell tax joy and Halosource warning

By BFN News | 09:03 AM | Wednesday 27 December, 2017


The FTSE 100 advanced 16 points to 7,603 as trading resumed following the festive period. Serviced office provider IWG (IWG) has received an indicative takeover proposal from Brookfield Asset Management and Onex Corporation. The approach follows recent share price weakness caused by a profit warning in October which wiped a third off IWG's market value. IWG's shares jumped 25% to 250p on today's news. Oil producer Royal Dutch Shell (RDSB) said it should benefit from US tax changes primarily due to the reduction in the US corporate income tax rate from 35% to 21%. The changes are effective from 1 January 2018 and will impact the company's fourth quarter results. FTSE 100 miner Rio Tinto (RIO) said it has completed its $1.5bn share buyback programme announced in two stages during 2017. It will today start to buy back a further $1.925bn worth of shares, to be completed by the end of 2018. The $1.925bn figure represents the remaining portion of the $2.5bn share buyback programme announced on 21 September 2017, returning money from the sale of a coal business to shareholders. DFS Furniture (DFS) has paid £1.2m for eight store leases, assets and intellectual property of Multiyork Furniture, which is in administration. The group said it intended that six stores would be converted to trade as Sofa Workshop, and the other two as DFS. It has also acquired all intellectual property rights of Multiyork, including the Multiyork trademark, product designs, domain names and marketing databases. HaloSource (HALO) slumped 27% to 1p after warning that revenues would probably be at the low end of forecasts. An unexpected delay in receipt of glass pitchers from a supplier has temporarily prevented it from shipping product to one of its customers, JiuBan, prior to the end of December. HaloSource said this would have a material negative impact on its revenues for 2017 and it now anticipated that its total sales would be in the range of $2.6m to $3.0m and net loss for the year would be in the range of $5.0m to $5.5m. Shares in UK Oil & Gas Investments (UKOG) crashed by 22% to 3.08p after a disappointing update. It said the Basal KL3 test has been re-run following mechanical problems and that low reservoir productivity indicated the zone may not be economically viable. At 9:03am: (LON:HALO) HaloSource DI share price was -0.45p at 0.93p (LON:IWG) IWG Plc share price was +52.25p at 252.45p (LON:RDSB) Royal Dutch Shell share price was +23.25p at 2494.75p (LON:RIO) Rio Tinto PLC share price was +54.5p at 3801p (LON:UKOG) UK Oil Gas Investments Plc share price was -0.83p at 3.15p Story provided by StockMarketWire.com

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