Elliott Advisors considering bid for Currys, Unite inks deal with Newcastle University
London open
The FTSE 100 is expected to open 14 points lower on Monday, having closed up 1.5% on Friday at 7,711.71.
Stocks to watch
US private equity firm Elliott Advisors on Monday confirmed it was considering a possible cash offer for struggling electrical retailer Currys. Elliott, which bought the UK bookstore chain Waterstones in 2018, said in a statement there was “no certainty that an offer will be made for Currys” or the terms on which any bid might be made. Currys on Sunday rejected Elliott’s approach, saying its £700m proposal “significantly undervalued” the chain. Elliott has until March 16 to make a firm bid.
Student accommodation specialist Unite Group announced a strategic partnership with Newcastle University on Monday, agreeing to jointly develop 2,000 new student beds. The FTSE 100 firm said that, with total development costs estimated at £250m, its share would amount to £128m, positioning it as the development and asset manager with a 51% ownership stake in the venture. It said the initiative at Newcastle University's Castle Leazes site would involve the demolition of existing accommodation this summer, with the new beds slated for completion between 2027 and 2028.
Newspaper round-up
Private firms that lease out trains for Britain’s railway have seen their profits treble in a year, with more than £400m paid in dividends, official figures show. The rolling stock companies paid out a total of £409.7m to shareholders and profit margins rose to 41.6% in 2022-23, according to the Office of Rail and Road, as the rest of the railway was told to make swingeing cuts and salaries were frozen. Taxpayer subsidies are still running at twice pre-pandemic levels. – Guardian
The world’s five largest listed oil companies have made profits of more than a quarter of a trillion dollars since Russia’s invasion of Ukraine led to dramatic increases in energy prices and household bills. The “super-majors” – BP, Shell, Chevron, ExxonMobil and TotalEnergies – have made $281bn (£223bn) since the war began in February 2022, according to Global Witness. – Guardian
The “rogue trader” Nick Leeson has claimed that Mike Ashley’s legal battle against Morgan Stanley exposes what could be the worst “risk management breakdown” since he triggered the collapse of Barings Bank. Mr Leeson, the former derivatives trader behind the collapse of the UK’s oldest merchant bank, said Morgan Stanley would have been “asleep at the wheel” if the court case shows that risks related to nearly €220m (£188m) of Mr Ashley’s trades were allowed to build up over weeks. – Telegraph
Thousands of Britain’s pubs, restaurants and hotels have run out of cash reserves, leaving them in a “perilous state”, according to new research. A joint survey by the hospitality industry’s biggest trade bodies found that a quarter of venues had exhausted their cash, making them “extremely vulnerable to the slightest shock”. – The Times
The government is holding talks with EDF to take control of land at a site in Lancashire as part of plans to roll out mini-nuclear power stations in Britain. Great British Nuclear is in early discussions with the French state-owned energy group over buying land adjacent to its existing nuclear plants at Heysham, with a view to potentially giving the green light for a private developer to build a small modular reactor there. – The Times
US close
Stocks closed in the red on Wall Street on Friday, with the Dow Jones Industrial Average down 0.37% to 38,627.99.
The S&P 500 lost 0.48% to 5,005.57, and the Nasdaq Composite was off 0.82% to 15,775.65.