Melrose Industries

Ticker MRO

Today's data summary

Market closed
% change
-1.11%
Price Pence
214.10
Change
-2.40
As of 22:13 25 Sep 2018
Market cap. Pound sterling
10,401.52 million
As of 22:13 25 Sep 2018

Latest updates

No respite for Debenhams' share price

Debenhams
PA

As we head towards midday, things aren't getting any better for Debenhams.

The department store's share price is down 16.9% at 10.63p after it emerged at the weekend that the company has retained KPMG to assess its options - including a Company Voluntary Arrangement.

Meanwhile, the FTSE 100 is trading up 0.23% at 7,294.39.

RBS is leading the risers - up 2.2% at 250.55p - and is closely followed by supermarket group Morrisons which will announce its results for the first six months of its financial year on Thursday.

After strong stock market trading last week on its interim results, Melrose Industries starts the week as the biggest blue chip faller, down 3% at 219.15p.

The FTSE 250 is up 0.12% at 20,234.65 with packaging group RPC leading the way - up 19% at 813.2p - after confirming takeover talks with private equity firms Bain and Apollo.

Melrose tops FTSE 100 risers

Melrose Industries
Melrose Industries
Melrose Industries acquired GKN earlier this year for £8.1bn

Despite reporting a £303m interim loss, Melrose Industries is leading the FTSE 100 risers at midday.

The company, which succeeded in buying engineering firm GKN earlier this year for £8.1bn, saw its share price rise by 5.52% to £234.95.

Melrose said the loss was due to "significant acquisition related charges" but chief executive Christopher Miller said: "Plans have been agreed and are now being implemented to realise the full potential of GKN's world-leading, but currently under-developed, businesses."

British Gas-owner Centrica remained as a major blue chip riser - up 5.23% to 150.9p - after Ofgem announced a price cap on household energy bills.

The FTSE 100 is down 0.24% at 7,365.43.

Thameslink-owner Go-Ahead is the FTSE 250's biggest riser, up 6.6% at £17.45 after reporting better than expected full-year profits.

Sirius Minerals, which is seeking additional funding for its North Yorkshire potash mine, is down 10.4% at 29.17p.

The FTSE 250 is down 0.22% at 20,344.38.

Melrose makes loss after GKN buy

Engineer
GKN

Turnaround specialist Melrose has reported a half year loss after buying one of the UK's biggest engineering firms, GKN.

It made a statutory loss before tax of £303m in the six months to 30 June, "due to booking significant acquisition related charges but only including 73 days of trading from GKN" it said.

Change at the top for Melrose

BBC Radio 4 Today business presenter Dominic O'Connell tweets:

Kingfisher slides, FTSE rebounds

Kingfisher owns B&Q
Getty Images
Kingfisher's B&Q saw stronger sales during the hot weather

Industrial conglomerate Melrose is leading the FTSE 100 risers as trading heads towards midday, up 2.3% at 218.05p.

Russian steelmaker Evraz led the blue chip fallers, down 4% at 469.6p, closely followed by Kingfisher whose shares dropped 2.9% to 279.8p despite reporting a turnaround in second quarter sales.

The FTSE 100 is up 0.67% at 7,548.15.

The FTSE 250 is ahead 0.86% at 20,494.43.

UK stocks maintain gains

The FTSE 100 is keeping its head above water - just.

It is trading up 7.12 points at 7,649.11.

Copper miner Antofagasta continues to lead the fallers with its share price down 5.7% at 898.3p.

Investment firm Melrose is the biggest riser, up 2% at 221.3p.

The FTSE 250 is up 0.21% at 20,617.

Miners lead FTSE charge

A mine
Getty Images

Miners are leading the FTSE 100 charge this morning.

Antofagasta is the biggest riser in the blue chip index, up 2.73% to 969.70, while Melrose has climbed 2.45% to 213.20.

Meanwhile BHP Billiton is up 2.32% to 1,702.

The FTSE 100 is up 0.44% at 7,651.51.

Why the the GKN bid battle matters

Simon Jack

BBC Business Editor

GKN
GKN

Later we will find out whether the owner of a company with 260 years of engineering and innovation history will throw its lot in with a company that likes to run businesses for less than five.

Melrose's pursuit of GKN is the first hostile takeover bid to go the distance for nearly a decade and, as such, is an important litmus test of the brand of capitalism at work in the UK today.

As we contemplate the takeover of a venerable name with 60,000 employees by a smaller company that is much loved by the markets but mistrusted by unions and many politicians, the ghosts of Kraft, Cadbury, BHS and the smoke from the still smouldering wreck of Carillion hover in the mind.

These were all very different disasters but there are some common denominators which are at play in the Melrose-GKN tussle.

Read Simon's full blog here.

Key points in GKN battle

BBC Radio 5 live

GKN
GKN

With the deadline to decide GKN's fate literally just hours away, Sonja Laud, head of equity at Fidelity International, says investors in the engineering group should consider three things when deciding whether to vote for or against the £8.1bn offer from Melrose.

She tells Wake Up to Money: "Here, in particular, which management team do we think is better equipped to raise profitability which has always been an issue.

"If you look at margin levels then I think there's a fair point to say 'okay, they should be higher' then pension issues and debt levels - I think that's the three main points that should be the framework for investors to assess."

She says that shareholders should then look at the two different plans on the table.

"Who do we think is better equipped to manage the assets going forward?"