Fidessa in 'advanced' takeover discussions, Vodafone to trial drone tracking technology
London open
The FTSE 100 is expected to open seven points higher on Tuesday, having closed down 0.64% at 7,247.66 on Monday.
Stocks to watch
Fidessa has confirmed that it is in "advanced discussions" about being taken over by Swiss banking software group for 3,646.7p per share in cash. After Fidessa's shares rose almost 12% the day before, the FTSE 250 company's directors said that if the discussions result in a firm offer they intend to recommend it to shareholders.
HSBC’s annual profit rose by 11% as higher revenue and lower bad debts made up for higher costs at the global bank. Adjusted pre-tax profit for the 12 months to 31 December rose by $2.1bn (£1.5bn) to $21bn as adjusted revenue increased 5% to $51.5bn. On an adjusted basis, loan impairment charges fell to $1.8bn from $2.6bn, mainly due to the healthier state of the oil and gas industry in North America.
Vodafone announced the start of trials of what it claims is the world's first air traffic control drone tracking and safety technology on Tuesday. The FTSE 100 telecoms giant said its approach used 4G internet of things (IoT) technology to protect aircraft from catastrophic accidents, as well as prevent inadvertent or criminal drone incursions at sensitive locations such as airports, prisons and hospitals.
Newspaper round-up
Two more shareholders in BHP Billiton have put pressure on the board of the FTSE 100 mining giant by urging it to consider dropping its dual listing, which Elliott Advisors, an activist investor, says is “obsolete and value destroying”. Baring Asset Management and Plato Investment Management, which control shares worth about $280 million, have asked BHP to set out why it believes the time is not right to consider simplifying its structure. - The Times
BT has put its cable-making arm up for sale in a sign of efforts to simplify and focus its business following a string of disasters. It is understood that the investment bank Greenhill is handling a sale of BT Cables, a Manchester-based unit within BT Wholesale which supplies the company’s network subsidiary Openreach with fibre-optic and copper cables. - Telegraph
Jeremy Corbyn will promise in a speech that a future Labour government would “intervene to prevent hostile takeovers” like investment firm Melrose’s £7.4bn bid for British manufacturing company GKN. The Labour leader will tell delegates at the EEF manufacturing conference in London that if the party wins the next election it will “broaden the scope of the public interest test” to allow the government to stop takeovers that threaten to “destroy our industrial base”. - Guardian
US close
Wall Street remained closed on Monday for the President’s Day federal holiday.
On Friday, the Dow Jones Industrial Average finished up 0.08% at 25,219.38 and the S&P 500 eked out gains of 0.04% to 2,732.22, while the Nasdaq 100 fell 0.36% to 6,770.66.