A merger between Granada and Carlton is back on the cards again this morning, boosting confidence in...
A merger between Granada and Carlton is back on the cards again this morning, boosting confidence in trading as well as the performance of the FTSE 100.
Granada saw its shares jump 6p or 9% to 72.5p and Carlton Communications leapt 10.25p or 9.1% to 123.25 p after it was announced Granada, the biggest ITV network, would take over the company. Payment is likely to be as 68% of the combined company and £200m. The last attempt to merge these two companies collapsed two years ago when Carlton attempted to take over Granada.
The FTSE 100 index added 96.00 points or 2.5% to 3873.10 but trading elsewhere was relatively limited.
Aveva Group, a company which designs computer systems for designing power plants, rose 8.5p or 3.3% to 265p as its revenue rose 16% in the six months ended Sept. 30.
GlaxoSmithKline also jumped 38p or 3% to £13.09 after gaining approval in the US to sell Avandamet, its oral treatment for diabetes.
J Sainsbury climbed 18p or 7.1% to 271p as it expects to meet profit targets and Tesco gained 7.25p or 3.7% to 201.5p after announcing plans to set up a chain of smaller stores in rural Thailand, inviting local traders to sell vegetables and other fresh goods in the outlets.
A rally in US trading yesterday helped to lift the Asian indices as minor signs of a recovery will increase demand for Japanese exports, Korean and Singapore exports.
Japan's Nikkei 225 index climbed 1.1% to 8529.61 while the Straits Times index in Singapore gained 1.3%, led by Venture Corp and Creative Technology.
Hong Kong's Hang Seng Index also added 0.8%, after the Singtao Daily suggested the government may suspend land sales to boost property prices at companies like Sun Hung Kai Properties.
Indices in Taiwan, China, Indonesia and Thailand fell, while all other major benchmarks in the region gained.
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