Investors are backing online grocery service Ocado (OCDO) with weekend reports emerging that it is closing in on a deal with Mark & Spencer (MKS) to deliver its fresh foods to customers.
Ocado heads the FTSE 100 leader board in early trade on Monday, up nearly 4% at 983.2p, on the strength of the speculation despite neither business so far confirming the validity of the story. Marks & Spencer is also higher, up 2% at 295.8p.
Going the other way is oil industry services group John Wood (WG.), topping the FTSE 100 loser board after selling several non-core assets. The $54m deals are part of the group’s plans to ease balance sheet strain by cutting borrowings. The group is aiming to generate in excess of $200m from asset sales in the months ahead.
But investors seem unimpressed, marking the stock nearly 3% lower at 519p.
Tobacco firms are also weak, with British American Tobacco (BATS) down 1.3%, while Imperial Brands (IMT) is 1.2% lower. Both firms have diversified into e-cigarettes, which are attracting unwelcome attention from US regulators.
CALLS FOR BOARDROOM CHANGE
Shares in budget airline Flybe (FLYB) have soared more than 30% higher after confirming that a major investor is demanding boardroom changes.
Flybe is in the middle of a deal to be taken over by a consortium including Virgin Atlantic, Stobart Group and investment firm Cyrus Capital Partners. But investor Hosking Partners objects to the deal, which will see Flybe sold for 1p a share. Hosking Partner owns 19.2% of the business.
Lender Paragon Banking (PAG) said it started its financial year well, delivering strong lending growth across its main business areas. For the first quarter ended December 31, new business flows rose 41% to £660m from £469.8m in the same quarter last year.
Stock broker Shore Capital (SGR:AIM) has confirmed that it is in talks to buy small cap specialist Stockdale Securities.
