Ocado placing under pressure
The placing of Ocado shares, the Internet grocer, is this evening balanced on a knife edge with news that just 80% of the shares on offer have been taken up by investors. However, there are still 24 hours in which investors can apply for shares in the offer and the company is still confident the sale will proceed and be priced between the £2 and £2.75 a share indicative range. We should hear over the next 24 hours as to whether the deal will be completed and will go ahead.
If the Ocado deal is cancelled at the last minute this will effectively kill the UK new issues market overnight and we will see a number of companies shy away from new equity issues. It is not the quality of these companies which is being questioned but the strength of the UK stock market and indeed UK investor appetite for new issues. It will come as no surprise to learn that new issues are struggling to succeed in the current environment and may indeed struggle for some time to come.
While the UK stock market itself has rebounded from last week's lows there are still concerns regarding the economic background and investor confidence.
Share this..
Related stories
HSBC chief executive to give bonus to charity
Michael Geoghegan, the chief executive of HSBC, is in line for a £4 million bonus this year but he has revealed plans to give this to charity. However, five of the company's top earners will share a bonus pot of £35 million. The highest bonus is set to go to Stuart Gulliver, the head of the company's investment banking division, who is in line for a £9 million bonus which he has indicated he wi...
Read MoreHas the recovery in the UK banking sector run its course?
News that Qatar Holdings will be reducing its significant shareholding in Barclays bank has prompted many investors and analysts to consider whether the recovery in the UK banking sector has run its course for the time being. There is no doubt that the sector is well and truly over the worst but whether we will see the sector continue to move ahead in the short to medium term is very much open to...
Read MoreWill Stagecoach save National Express?
The potential Stagecoach and National Express merger took an unexpected turn this morning with news that Stagecoach effectively ruled itself out of a bid in September and is, under takeover and merger rules, unable to make an offer for the company for six months. The only potential route around this restriction is if Stagecoach is invited by the management of National Express to put together some...
Read MoreBarclays Decides To Shore Up Balance Sheet
News that Barclays Bank has sold off its life insurance portfolio to Swiss Re for £753 million will be welcomed by shareholders as a further strengthening of the group's core financial ratios and balance sheet. Unlike Royal Bank of Scotland (RBS), which is currently struggling to sell off its insurance division for any where near the original £7 billion price tag, Barclays has completed the muc...
Read MoreBradford and Bingley slash jobs to cut costs
While on the face of it this may look like a desperate move by the Bradford and Bingley at least it can be argued that they are not sitting on their hands watching 'Rome burn'. The move to cut 370 employment positions, mainly from the group's mortgage operations, is a step in the right direction and it is estimated that it will cut £15 million a year from its cost base.
However, j...