Shares in FirstGroup slid nearly 2% to 136.98p today after the Aberdeen-based transport giant revealed it needed more time to discuss a takeover proposal from I Squared Capitol Advisors.
The proposal from I Squared – rejected by FirstGoup earlier this month – is worth more than £1.2 billion.
Under City takeover rules, the private equity house had until 5pm today to “put up or shut up” – to either announce a firm intention to make an offer for FirstGroup or walk away.
But FTSE 250-listed FirstGroup said today it sought and was granted an extension of that deadline to 5pm on July 21 “in order to allow discussions with I Squared to continue”.
Footsie falls
Meanwhile, the FTSE 100 ended the day down 68.77 points, or 0.97%, at 7,020.45.
In other company news, gambling giant 888 slipped in value after it warned half-year revenues may fall due to the UK’s crackdown on online gambling and its temporary exit from the Netherlands.
The group, which is soon to complete its £2.1bn takeover of William Hill’s UK and European businesses, said turnover for the first half of the year is likely to drop to between £330 million and £335m.
Shares in the firm declined by 14.6p to 160.7p as a result.
Declining demand for wine
Naked Wines shed more than two-fifths of its value after the online wine retailer cautioned over sales and earnings for the year ahead.
The group warned sales could fall by up to 4% in the year to the end of next March, while it expects to only break even on an underlying earnings basis. Shares finished the session 125.3p lower at 162.1p.
The price of oil struggled as weak purchasing managers’ index figures fuelled concerns that demand from industry could waiver due to an economic slowdown.
Global benchmark Brent crude was down by 0.51% at $111.17 per barrel when the London markets closed.
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