Author: Fiona Craig

  • Coca Cola HBC stock falls on analyst downgrade

    Coca Cola HBC stock falls on analyst downgrade

    Coca Cola HBC AG (LSE:CCH) stock is sliding 3.1% to trade at 4,806.9p as a high-profile analyst downgrade rattled investor confidence, overshadowing the company’s otherwise strong fundamental backdrop.

    BNP Paribas Exane cut its rating on the stock from Outperform to Neutral, setting a price target of GBP50.00 and arguing that the shares’ extraordinary run — rising over 80% since January 2025 — has pushed the valuation to an approximate 8–18% premium over European Staples and Beverages peers, compared with a historical discount of around 10–13%.

    The downgrade also drew attention to a significant concentration risk: analysts estimate that Russia will account for roughly 30–40% of the company’s full-year 2026 group EBIT and EPS, a geopolitical exposure that the market may have been underpricing during the rally.

    Adding a further layer of caution, a company insider — a Person Discharging Managerial Responsibility — sold ordinary shares on 6 August 2026, a disclosure that has lingered in the background as a modest negative signal heading into today’s session.

    The broader market context offered little support. The FTSE 100, of which Coca-Cola HBC is a constituent, opened lower today as renewed uncertainty around the Strait of Hormuz weighed on UK equity sentiment, with Iran ruling out reopening the critical shipping route absent a series of US concessions.

    Meanwhile, across the Atlantic, U.S. indices were broadly flat to marginally positive, providing no meaningful offset for London-listed consumer staples names.

    Taken together, the BNP Paribas Exane valuation reset — arriving just days after the stock had already rallied sharply on a strong H1 2026 earnings beat — created a classic “buy the rumour, sell the news” dynamic, with today’s session crystallising the view that near-term upside may now be limited at current price levels.

  • Market Open: Plus500 Record Results, Marshalls Profit Growth

    Market Open: Plus500 Record Results, Marshalls Profit Growth

    UK markets open mixed as Plus500 posts record results, Marshalls lifts profit and dividend, while Brent crude rises on Hormuz risks.

    Market Overview

    The FTSE 100 opened unchanged at 10,901.09, while the Euronext 100 edged 0.01 per cent lower to 1,968.96 and Germany’s DAX gained 0.03 per cent to 26,328.02. European sentiment remained cautious as investors weighed continuing uncertainty over shipping through the Strait of Hormuz and looked ahead to US inflation data. Overnight on Wall Street, the Nasdaq closed higher at 26,690.62 and the S&P 500 also advanced to 7,757.64.

    Commodity markets were mixed, with copper and gold edging higher, Brent crude rising as uncertainty surrounding the reopening of the Strait of Hormuz kept supply risks elevated, and natural gas broadly unchanged. Bitcoin rose against sterling. The US dollar, euro and Japanese yen strengthened marginally versus the pound, while the Swiss franc and Australian dollar weakened slightly, leaving sterling mixed against major currencies.


    Market Numbers

    FTSE 100: Unchanged (0.00%), 10,901.09
    Euronext 100: Down (-0.01%), 1,968.96
    DAX: Up (+0.03%), 26,328.02
    NASDAQ: Up, 26,690.62
    S&P 500: Up, 7,757.64


    In the Headlines

    Record first-half results – Plus500 (LSE:PLUS)
    Plus500 reported record first-half results, with revenue rising 12% year-on-year to $462.9 million as customer activity strengthened and non-OTC operations expanded. The fintech group also announced $182.5 million of additional shareholder returns through dividends and share buybacks, while maintaining its full-year expectations.

    Profit and dividend increase – Marshalls (LSE:MSLH)
    Marshalls increased adjusted first-half operating profit by 8.1% despite subdued UK construction markets, while adjusted earnings per share rose 14.4%. The building products group raised its interim dividend by 13.6% and maintained its full-year profit expectations, supported by cost reductions and operational improvements.


    Currencies (vs GBP)

    USD: Up (+0.01%), $1.3489
    CHF: Down (-0.00%), Fr.1.0903
    EUR: Up (+0.02%), €1.1672
    JPY: Up (+0.01%), ¥213.0005
    AUD: Down (-0.00%), $1.91
    Bitcoin (BTC/GBP): Up, £48,380.42


    Commodities

    Copper: Up
    Gold: Up
    Brent Crude: Up
    Natural Gas: Unchanged

  • Crude prices steady as Iran keeps barriers to Hormuz reopening in place

    Crude prices steady as Iran keeps barriers to Hormuz reopening in place

    Oil prices traded in a narrow range on Monday as investors reassessed prospects for restoring normal shipping through the Strait of Hormuz after Iran reiterated that several demands must be met before the key energy corridor can fully reopen.

    Brent crude futures added 19 cents to $83.74 a barrel by 0807 GMT, while U.S. West Texas Intermediate futures were 3 cents higher at $78.21.

    The modest gains followed a steep decline in the previous week, when both oil benchmarks lost more than 7%. That selloff was driven by expectations that Iran and Oman were moving closer to an agreement capable of reopening the Strait of Hormuz.

    Before fighting erupted across the Middle East at the end of February, approximately one-fifth of worldwide oil and liquefied natural gas supplies travelled through the strait, making developments surrounding the shipping route a major influence on global energy prices.

    Tehran complicates prospects for rapid return of shipping

    Iran said on Sunday that its agreement with Oman over the waterway had entered its final stages. However, Tehran made clear that completing the arrangement would not automatically result in unrestricted shipping through Hormuz.

    Iran continues to demand that Washington meet several additional conditions, including compensation for widespread U.S. attacks on the country, before the waterway can fully reopen.

    Iranian Foreign Minister Abbas Araqchi separately said Tehran and Washington are not currently holding negotiations. He added that Iran would not begin talks while the U.S. continues to violate an interim agreement reached in June.

    The comments have challenged expectations that commercial traffic through Hormuz could quickly return to normal and helped preserve some of the geopolitical premium in crude prices following last week’s sharp decline.

    New regional attacks reinforce energy supply risks

    Security concerns elsewhere in the region provided another source of support for oil markets after the Iran-aligned Houthis said they had targeted Saudi Aramco’s Jazan refinery on Sunday.

    The reported attack came only two days after Saudi Arabia agreed a defence pact with Turkey and Pakistan, its Sunni Muslim allies, amid mounting regional instability stemming from the U.S.-Israeli conflict with Iran.

    Further evidence of the risks facing energy shipping came from UAE producer ADNOC, which said on Friday that 15 of its vessels had been attacked while passing through the Strait of Hormuz since the conflict began.

    The combination of unresolved negotiations and continuing attacks leaves crude markets particularly exposed to shifts in the regional security outlook.

    “Any major progress towards restoring unrestricted shipping could exert downward pressure on oil prices, while a breakdown in negotiations or renewed supply disruptions could quickly revive the geopolitical risk premium,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet.

  • Gold stays near seven-week highs as Iran tensions and Fed policy remain in focus

    Gold stays near seven-week highs as Iran tensions and Fed policy remain in focus

    Gold prices held close to their strongest levels in seven weeks on Monday as investors balanced continuing geopolitical uncertainty surrounding Iran against shifting expectations for U.S. monetary policy ahead of important inflation releases.

    Spot gold advanced 0.3% to $4,354.51 an ounce by 03:03 ET (07:03 GMT), while U.S. gold futures gained the same amount to $4,414.40.

    Bullion had climbed to its highest level since June 17 during Friday’s session after a surprisingly weak U.S. employment report showed that the economy lost jobs in July. Previous months were also subject to substantial downward revisions, challenging earlier assumptions about the resilience of the American labour market.

    Rate hike expectations retreat after U.S. employment shock

    The weaker jobs picture caused traders to reassess the likelihood of another Federal Reserve interest-rate increase in September.

    Futures markets now indicate less than a 50% probability of a rate hike at the September 15-16 meeting. Before the employment figures were released, markets had assigned a greater-than-even chance to another increase.

    This shift has provided support for bullion. Gold pays no interest, meaning a lower interest-rate environment typically reduces the relative disadvantage of holding the precious metal compared with yield-generating assets.

    The next major signals are expected from Wednesday’s U.S. Consumer Price Index report and Thursday’s producer inflation figures. Evidence that price pressures are moderating could strengthen expectations for a less restrictive Federal Reserve policy stance.

    Strait of Hormuz keeps geopolitical risk elevated

    Developments involving Iran are providing another source of support for precious metals. Tehran has said negotiations with Oman over new shipping routes through the Strait of Hormuz are nearing a final agreement, but several conditions involving Washington remain unresolved.

    Iran maintains that these requirements must be satisfied before the strategically important shipping route can fully reopen, leaving uncertainty surrounding energy flows through the Persian Gulf.

    Continued geopolitical instability generally strengthens gold’s appeal as a safe-haven asset. However, higher crude prices introduce a competing influence by potentially adding to inflationary pressures. Persistent energy-driven inflation could make it more difficult for the Federal Reserve to move towards a more accommodative policy stance.

    Precious and industrial metals move higher

    Silver outperformed gold during Monday’s session, rising 1.3% to $64.36 an ounce, while platinum added 0.5% to reach $1,757.64.

    Copper also strengthened, with benchmark London Metal Exchange futures gaining 0.6% to $14,126.33 per tonne. U.S. copper futures increased 0.7% to $6.635 per pound.

    “Copper has rallied sharply on expectations of US import tariffs, as traders rush metal into the US and physical markets tighten. With prices back near record highs, any policy disappointment could put that tariff premium to the test,” ING analysts said in a recent note.

  • Wall Street futures steady as Iran demands and U.S. inflation dominate outlook: Dow Jones, S&P, Nasdaq

    Wall Street futures steady as Iran demands and U.S. inflation dominate outlook: Dow Jones, S&P, Nasdaq

    U.S. stock futures were cautiously higher on Monday as traders confronted fresh uncertainty surrounding the Iran conflict while preparing for a key U.S. inflation report later in the week. Berkshire Hathaway (NYSE:BRK.B) was also in focus after its latest quarterly results showed chief executive Greg Abel deploying more of the conglomerate’s substantial cash reserves into equities.

    Wall Street futures hold near flat

    Futures linked to the S&P 500 and Nasdaq 100 edged higher, while Dow futures slipped as markets balanced weaker U.S. employment data against fading expectations for a quick geopolitical breakthrough in the Middle East.

    At 03:05 ET (07:05 GMT), Dow futures were 25 points, or 0.1%, lower. S&P 500 futures added 8 points, equivalent to 0.1%, while Nasdaq 100 futures climbed 86 points, or 0.3%.

    The major Wall Street indices had advanced on Friday after the latest employment report showed an unexpected loss of 23,000 U.S. jobs in July. Substantial downward revisions to the previous two months further undermined perceptions that the labour market remained resilient.

    The weaker employment picture prompted investors to reduce expectations for a Federal Reserve interest rate increase next month. Treasury yields moved lower following the figures, while the U.S. dollar also weakened.

    Iran raises the stakes over Strait of Hormuz reopening

    Prospects for an easing of tensions in the Middle East suffered another setback after Tehran detailed a broad range of conditions that it says Washington must satisfy before the Strait of Hormuz is fully reopened.

    Iranian state news agency IRNA reported that the secretary of the country’s Supreme National Security Council called for the permanent termination of the war, removal of the naval blockade, elimination of sanctions and release of frozen Iranian assets. Tehran is also seeking war reparations, an end to threats and insults and the cessation of U.S. military action against Iranian allies.

    The demands reinforce the strategic leverage associated with the Strait of Hormuz. Roughly one-fifth of worldwide oil and liquefied natural gas supplies move through the waterway, meaning prolonged restrictions on shipping could have far-reaching consequences for energy prices, inflation and global economic activity.

    Crude prices moved higher as traders assessed the latest developments. Brent futures gained 0.5% to $83.95 a barrel by 03:23 ET, extending the volatile trading conditions seen throughout the conflict.

    Berkshire Hathaway steps up equity investment under Greg Abel

    Berkshire Hathaway (NYSE:BRK.B) reduced its enormous cash position to $364.7 billion in the second quarter as chief executive Greg Abel increased the conglomerate’s activity in the equity market.

    Berkshire became a net buyer of stocks for the first time in 15 quarters, marking a notable change in capital deployment under Abel, who succeeded Warren Buffett at the beginning of the year. Billions of dollars were directed towards major holdings, including Google parent Alphabet.

    The company also spent $4.53 billion repurchasing its own shares during the quarter through June, representing a substantial increase from the relatively modest level of buyback activity during the first quarter.

    Berkshire had only resumed share repurchases earlier this year following a period of more than 12 months without buying back its own stock.

    The increased investment activity accompanied a doubling in quarterly net profit, while the reduction in cash provides an early indication of how capital allocation could evolve under Berkshire’s new leadership.

    U.S. CPI could shape the Federal Reserve outlook

    Wednesday’s U.S. Consumer Price Index report is set to become the next major macroeconomic test for investors as markets assess the potential direction of Federal Reserve policy.

    Economists expect headline inflation to moderate to 3.4% year-on-year in July from 3.5%. Energy remains an important source of uncertainty after gasoline prices increased following the outbreak of the Iran conflict in late February.

    Core CPI, which removes food and energy prices, is forecast to ease to 2.5% from 2.6%.

    Vital Knowledge analysts noted that these inflation rates would still be substantially above the Federal Reserve’s target. Policymakers therefore face an increasingly complicated environment in which persistent inflation must be weighed against signs of deterioration in the U.S. labour market.

    Chinese inflation undershoots forecasts

    Chinese inflation figures provided another signal of subdued domestic price pressures, with consumer inflation slowing more sharply than economists had predicted during July.

    Official figures showed CPI increasing 0.5% year-on-year, compared with 1.0% in June and expectations for a 0.8% rise. The reading represented the slowest annual increase in six months.

    Consumer prices declined 0.1% from the previous month, missing forecasts for a 0.2% increase. That followed a 0.3% monthly decline in June.

    ING analysts pointed to transportation fuels as one of the largest changes in the inflation picture, with annual price growth in the category slowing to 0.8% in July from 15.3% the previous month.

    “Other than volatility in energy prices, we continue to see the main drags on inflation coming from food and rent,” analysts wrote.

  • European stocks pause near record highs as Hormuz and U.S. data take focus: DAX, CAC, FTSE100

    European stocks pause near record highs as Hormuz and U.S. data take focus: DAX, CAC, FTSE100

    European equity markets were little changed on Monday, holding close to record territory as investors balanced renewed strength in crude oil prices and continued uncertainty over Middle East shipping against the momentum generated by last week’s strong rally.

    The pan-European Stoxx Europe 600 Index traded broadly flat, remaining just below its all-time high after recording its strongest weekly advance since late June. Germany’s DAX, France’s CAC 40 and London’s FTSE 100 were also largely unchanged.

    The subdued session reflected competing influences on investor sentiment. Geopolitical risks remained elevated, while the macroeconomic backdrop received some support from Friday’s unexpectedly weak U.S. employment report, which substantially reduced expectations that the Federal Reserve would tighten monetary policy further.

    Oil prices rise as Hormuz negotiations remain unresolved

    Energy markets returned to the spotlight as Brent crude gained 0.6% to around $84.04 per barrel, extending its recent advance. Sustained strength in oil prices could renew concerns over higher input costs for European manufacturers and other energy-intensive industries.

    Investors continued to follow developments in the Persian Gulf after Iranian officials indicated that a draft bilateral agreement with Oman establishing new shipping channels through the Strait of Hormuz was approaching its final stages.

    However, Tehran maintained that the strategically important waterway would only reopen fully once additional conditions involving the U.S. had been satisfied. The lack of a definitive resolution has kept geopolitical risk premiums elevated across global crude oil and freight markets.

    Volkswagen restructuring comes under renewed scrutiny

    In corporate developments, Volkswagen AG (TG:VOW3) attracted attention after its controlling Porsche and Piëch families increased pressure on stakeholders to support management’s extensive restructuring programme.

    Backing from Porsche SE (TG:PAH3) could increase the likelihood of significant structural reductions across Volkswagen’s European operations. Executives have warned that tens of thousands of additional jobs could potentially be affected as the automaker responds to elevated production costs, tariff pressures and increasingly intense competition from Chinese electric vehicle manufacturers.

    European technology stocks await major U.S. earnings

    Technology suppliers traded cautiously as investors prepared for results from major U.S. companies including Cisco Systems Inc. (NASDAQ:CSCO), Applied Materials Inc. (NASDAQ:AMAT) and CoreWeave Inc (NASDAQ:CRWV).

    European semiconductor and cloud infrastructure companies will be watching the updates for further evidence on the durability of artificial intelligence-related capital expenditure following mixed signals from hardware companies last week.

    U.S. inflation data moves into focus

    Attention is also turning towards Wednesday’s U.S. Consumer Price Index report, which could provide the next major signal for the outlook for global interest rates.

    The inflation release takes on additional significance after Friday’s surprising U.S. labour market report showed the economy lost 23,000 jobs in July. Investors will be looking for evidence that underlying inflationary pressures are easing sufficiently to allow central banks on both sides of the Atlantic to maintain current interest rate settings heading into the autumn.

    Among individual European stocks, Hypoport (TG:HYQ) gained 3% following its earnings update. Stabilus (TG:STM), meanwhile, declined 5% after a request was made to terminate the CFO’s contract.

  • European gas prices rebound as Hormuz uncertainty clouds supply outlook

    European gas prices rebound as Hormuz uncertainty clouds supply outlook

    European natural gas prices moved sharply higher on Monday as continued uncertainty over shipping through the Strait of Hormuz outweighed tentative signs of diplomatic progress, highlighting Europe’s ongoing exposure to disruptions in global energy supply routes.

    Benchmark Dutch front-month gas futures climbed 2.9% to around €56.90 per megawatt-hour, recovering part of the losses recorded last week. Comparable British wholesale gas contracts rose 2.6% to 139.50 pence per therm.

    The renewed increase followed reports that a draft agreement between Iran and Oman establishing new shipping channels through the Strait of Hormuz was approaching completion. However, Tehran indicated that the strategically important waterway would not fully reopen until additional conditions involving the U.S. had been addressed.

    The outstanding demands have reduced expectations for an immediate return to normal liquefied natural gas traffic through the Persian Gulf. With a significant share of global LNG supplies dependent on the region, continued disruption is keeping international gas balances under pressure.

    Shipping restrictions are also delaying summer cargoes from major Middle Eastern exporters including Qatar. This comes at a sensitive time for Europe, where utilities are attempting to rebuild inventories ahead of the winter heating season.

    European Union underground gas storage facilities entered the middle of August at approximately 56% capacity, leaving inventories considerably below historical averages for this stage of the year.

    Higher-than-usual summer temperatures across southern Europe have added to the challenge. Increased demand for air conditioning has raised electricity consumption, forcing power generators to burn more natural gas and reducing the volumes available for injection into storage facilities.

    European utilities are simultaneously competing with Asian buyers for available spot LNG cargoes. Against this backdrop, energy analysts expect European gas prices to retain significant underlying support, with contracts likely to remain particularly sensitive to further developments surrounding negotiations and shipping conditions in the Persian Gulf.

  • Barclays highlights its top European aircraft engine stocks

    Barclays highlights its top European aircraft engine stocks

    Barclays has identified two European aerospace companies as its preferred investment opportunities within the aircraft engine sector, pointing to different attractions for investors looking for exposure to the industry.

    The bank’s assessment considers a range of factors, including financial strength, growth prospects, competitive positioning, operational delivery and balance sheet quality. Against these criteria, Barclays sees Safran and Melrose as offering particularly compelling, although distinctly different, investment cases.

    Safran (EU:SAF)

    Safran is Barclays’ preferred name in the European aircraft engine sector, with the bank describing the company as a “quality compounder” capable of delivering attractive returns consistently over the longer term.

    According to Barclays, Safran offers a particularly strong combination of growth, earnings visibility and resilience. Its leading position in engines for narrow-body aircraft remains a major competitive advantage, while expansion within its defence activities provides another potential source of growth.

    The company’s established record of operational execution also supports the investment case, alongside a positive net cash position that provides additional financial flexibility. Barclays believes these characteristics underpin a high-quality long-term market capitalisation growth story.

    Safran currently trades at a premium to many aerospace peers, but Barclays considers that valuation justified by the quality of the business. The bank also views the premium as reasonable when compared with other leading European industrial companies.

    Barclays has increased its price target for Safran to €390 from €370 and maintained its Overweight recommendation.

    Melrose (LSE:MRO)

    Barclays views Melrose as the more growth-oriented opportunity within its European aerospace coverage, highlighting the company as offering the highest free cash flow growth across the stocks it follows.

    The business also provides particularly strong exposure to rising original equipment production and the recovery in wide-body aircraft manufacturing, giving investors significant leverage to improving aerospace production volumes.

    Barclays acknowledges that uncertainty has increased following the Garden Grove scandal but believes investors have responded too negatively to the situation.

    Since the disclosure, Melrose’s relative share price underperformance implies approximately £1.4 billion of lost market value. Barclays considers this substantially greater than both the financial impact currently identified and its own estimate of the liability that the company is ultimately likely to face.

    The bank also notes that Melrose is smaller and more complicated to model than many of its larger aerospace peers. As a result, Barclays believes the shares may be less efficiently valued by the market.

    Rather than viewing that complexity purely as a disadvantage, Barclays sees it as an investment opportunity. Combined with what it considers the strongest growth profile within its coverage, this supports the bank’s Overweight recommendation and £7.10 price target for Melrose.

  • FTSE 100 edges lower as Iran tensions and Hormuz blockade curb risk appetite

    FTSE 100 edges lower as Iran tensions and Hormuz blockade curb risk appetite

    UK equities moved lower on Monday as investors remained cautious amid heightened tensions between the US and Iran and continued uncertainty surrounding the blockade of the Strait of Hormuz.

    The FTSE 100 was down 0.17% at 03:30 ET (07:30 GMT), while European markets also opened slightly weaker. Germany’s DAX declined 0.06% and France’s CAC 40 slipped 0.03%. Sterling was little changed against the US dollar at 1.3492.

    Geopolitical developments remained at the centre of market attention. U.S. Central Command said the number of commercial vessels redirected as part of enforcement measures linked to the US blockade of Iran had increased to 55, compared with 53 on August 8. Two vessels have been disabled and another two boarded to enforce compliance.

    CENTCOM also said more than 30 vessels had been permitted to pass through to deliver humanitarian assistance. Meanwhile, personnel aboard the USS Abraham Lincoln continued maintaining F/A-18E Super Hornets to ensure the carrier strike group remained prepared for operations.

    The latest developments followed comments from U.S. President Trump on Sunday suggesting Washington was adopting a “low-key” stance towards Tehran.

    “We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money,” Trump said, according to Axios.

    A separate Wall Street Journal report published on Sunday suggested Trump could be prepared to move away from pursuing a formal nuclear agreement and instead declare success if Iran fully reopens the Strait of Hormuz. Negotiations nevertheless remain complicated by demands from Tehran, which include ending the naval blockade, withdrawing U.S. forces, easing sanctions and providing war reparations, according to Iran’s Supreme National Security Council.

    Developments in Gaza also remained in focus after Trump shared an opinion piece by Hillary Clinton supporting his peace proposal. Clinton wrote that there is “no alternative framework” beyond the “20-point plan.”

    Israel has rejected Trump’s separate 15-point Gaza proposal, with Prime Minister Benjamin Netanyahu saying Israeli forces “will not carry out any withdrawal until Hamas is genuinely disarmed.”

    UK labour market shows signs of stabilisation

    There were more encouraging signals from the UK employment market, with KPMG and the Recruitment & Employment Confederation reporting “rays of light” as permanent hiring stabilised for the first time since Liz Truss stepped down as prime minister in 2022.

    The REC/KPMG permanent placements index increased to 50 in July from 49.1 in June. The temporary billings index slipped to 51.9 from 52.9, although it remained at one of its strongest levels of growth since early 2023.

    “Despite ongoing uncertainty it’s encouraging that businesses are starting to press ahead with investment,” said Callum Licence, KPMG UK & Switzerland Group Head of Advisory. The improvement came after the permanent placements measure experienced its longest recorded contraction, lasting 45 months.

    REC Chief Membership & Innovation Officer Maxine Bligh said “rays of light are beginning to break through for the job market as employers revive hiring plans,” with July becoming the first month in almost three years in which permanent placements did not decline.

    Oil and gold prices move higher

    Brent crude gained 0.13% to $83.66 per barrel, while WTI crude edged 0.14% lower to $78.08. Precious metals strengthened, with gold futures rising 0.32% to $4,413 and spot gold gaining 0.27% to $4,353.82.

    UK company round-up

    Serica Energy (LSE:SQZ) confirmed that its $197 million offer for Pharos Energy is final as Israel’s Ratio Petroleum continues to challenge the North Sea producer with a marginally higher competing proposal.

    Plus500 (LSE:PLUS) reported a strong first-half performance, with Customer Income increasing 24% and revenue advancing 12% to multi-year highs. EBITDA also moved higher despite increased spending on customer acquisition.

  • Pharos Energy shares fall as Serica holds bid firm and Ratio offers more

    Pharos Energy shares fall as Serica holds bid firm and Ratio offers more

    Pharos Energy (LSE:PHAR) shares fell around 5% on Monday after Serica Energy (LSE:SQZ) confirmed that it would not increase its takeover proposal for the oil and gas company, potentially strengthening the position of competing bidder Ratio Petroleum Energy.

    Serica said it does not intend to increase or otherwise improve the financial terms of its £145.7 million ($196.59 million) proposal for Pharos, which was announced on July 26, except under certain specified circumstances, including the emergence of another offer. The decision follows a higher proposal submitted by Israel’s Ratio Petroleum Energy.

    Pharos’ board switched its support to Ratio’s improved proposal on Friday, which values the company’s shares at 32.8 pence each. This is marginally above the 32.67 pence per share offered by Serica and prompted the board to withdraw its previous recommendation in favour of the Serica transaction.

    Serica said its decision to maintain its existing terms demonstrates a “highly disciplined approach to M&A.” The North Sea-focused producer also indicated that it continues to assess a pipeline of alternative opportunities across the U.K. North Sea and other regions as part of its broader growth strategy.

    Ratio’s revised proposal would give Pharos shareholders 28.8 pence per share in cash alongside a 4 pence special dividend. Together, the payments represent a 29.2% premium to Pharos’ closing share price of 25.4 pence on June 23, the final trading session before Ratio announced its initial approach.

    The revised terms have intensified the contest for Pharos, which has producing oil and gas operations in Vietnam and Egypt. Ratio has argued that its experience securing regulatory approvals across several jurisdictions provides greater certainty that its proposed transaction can be completed successfully compared with Serica’s offer.

    Competition for Pharos comes against a broader backdrop of consolidation within the oil and gas industry, as producers pursue acquisitions to diversify their asset portfolios. Deal activity has also been supported by elevated crude prices since the Iran war began in late February.