FTSE 100 movers: ARM flexes muscle; metal miners bashed

ARM Holdings shares flexed their muscle on Monday after the firm agreed to a £23.4bn takeover offer from Japan's Softbank, in what could be the first major move sparked by the post-Brexit collapse in the pound.

The board of the Cambridge-based chip designer, which is a major supplier of components for smartphones made by the likes of Apple and Samsung, said it unanimously recommended the 1,700p-per-share cash offer, which is a 43% premium to the 1,188.73p price at which trading closed on Friday.

SoftBank's offer price values ARM's shares at approximately £24.3bn, with shareholders still on the register on 8 September due to receive a dividend of 3.78p per share. ARM has also proposed a final dividend of up to 6.76p per share to be paid in May 2017, although if the effective date of acquisition occurs earlier it will not be paid out.

Mining stocks were under the cosh as metal prices dropped. BHP Billiton, Anglo American and Rio Tinto were among the biggest fallers on the FTSE 100.

Travel and leisure stocks also fell in the wake of the attempted coup in Turkey with TUI and easyJet down.

Glencore was also under pressure as Credit Suisse cut its rating on the stock to ‘neutral’ from ‘outperform’ amid a subdued copper market.

Housebuilders rallied, including Travis Perkins, Persimmon and Taylor Wimpey, even as Rightmove data showed UK house prices fell 0.9% between 12 June and 9 July to just under £308,000. Rightmove said worries around the Brexit vote took the wind out of the property market.

Market Movers

FTSE 100 (UKX) 6,691.36 0.33%

FTSE 100 - Risers

ARM Holdings (ARM) 1,694.00p 42.47%
RSA Insurance Group (RSA) 491.00p 2.66%
Sage Group (SGE) 669.50p 2.61%
Marks & Spencer Group (MKS) 333.60p 2.55%
Royal Bank of Scotland Group (RBS) 188.40p 2.39%
Travis Perkins (TPK) 1,555.00p 2.30%
Taylor Wimpey (TW.) 147.30p 2.29%
Persimmon (PSN) 1,599.00p 1.78%
Direct Line Insurance Group (DLG) 345.30p 1.71%
Berkeley Group Holdings (The) (BKG) 2,664.00p 1.52%

FTSE 100 - Fallers

BHP Billiton (BLT) 972.50p -2.41%
TUI AG Reg Shs (DI) (TUI) 941.50p -2.08%
BP (BP.) 449.95p -1.57%
Lloyds Banking Group (LLOY) 55.11p -1.57%
Anglo American (AAL) 823.60p -1.50%
easyJet (EZJ) 1,126.00p -1.23%
Antofagasta (ANTO) 502.00p -1.18%
Glencore (GLEN) 183.95p -1.08%
Rio Tinto (RIO) 2,444.50p -1.01%
Royal Dutch Shell 'A' (RDSA) 2,064.50p -1.01%