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A G4S security van leaves from Paisley Sheriff Court in Paisley, Scotland on July 19, 2016.
robert perry/Agence France-Presse/Getty Images
Mergers and acquisition news was driving some of the action in London on Wednesday, with G4S climbing on a hostile takeover bid, while betting group William Hill received a much anticipated offer from U.S.-based Caesars Entertainment.
G4S GFS, +5.92% shares were among the top performers in the FTSE 250 index, rising 5% after the U.K.-listed security company “unanimously” rejected an offer from Montreal-based Garda World. The £2.97 billion ($3.82 billion) cash offer was similar to a previous proposal by the rival security group. G4S said the offer significantly undervalues the company.
Elsewhere, shares of William Hill WMH, +1.38% climbed nearly 1% after Caesars Entertainment CZR, +5.08% agreed a £2.9 billion ($3.7 billion) deal to buy the British gambling company. Shares of Caesars climbed 2.8% in the U.S.
Staying on betting companies, 888 Holdings 888, +20.86% was a top performer on Wednesday, with shares surging 20% after “phenomenal” first-half results, with a 37% increase in group revenue, noted Gavin Kelleher, analyst at Goodbody. The company also reported a strong performance by its U.S. business and announced an interim and additional one-off dividend.
“While COVID was no doubt a benefit to the group, the fact it delivered the highest growth rate of any listed gambling operator in H1 is testament to the strength of its operational performance,” said Kelleher, who added that the results would probably have a positive read across for rivals.
“The value opportunity in the deal is largely skewed toward Caesars versus William Hill, in our view, given the growth prospects for digital gaming in the U.S.,” said a team of Jefferies analysts, led by David Katz, in a note to clients.
The FTSE 100 index was flat at 5893.36, set to lose 1.1% on the month and 4.5% for the quarter. The FTSE 250 MCX, +0.82% index rose 0.8%, with a 2.6% monthly drop as of Wednesday, and a quarterly gain of 1.2%.
