Investors digested corporate news, economic data and a mix of both on the European stock markets on Friday.
The FTSE 100 in London fell by 0.13% and lost over 11 points, to 8,338, while the DAX, Germany, followed suit, shedding 0.13%.
The CAC 40 in France and the IBEX in Spain both rose by 0.018%.
At 9:20 AM GMT+1 the pan-European STOXX 600 was just above flat, with a decline of 0.031%.
Direct Line’s shares rise after Aviva sweetens its deal
Direct Line Group shares soared 7.6%, to 2.53 PS after FTSE 100 insurance Aviva made a cash and share offer of PS3.6bn to buy its competitor.
The revised PS2.75 offer per share is a premium of 73% over Direct Line’s previous closing price, before the initial talks were disclosed.
The company rejected an earlier bid of PS2.50 for each share, saying it could revive its results independently after years with disappointing results.
Both companies made a statement highlighting the synergies that the merger would bring, which could unlock substantial value for the shareholders.
Aviva must make a final offer by Christmas Day or she will walk away.
The UK House Price Index reports the highest monthly rise in house prices this year
The UK house price trend continued to rise in November. This was the fifth month of consecutive increases.
Halifax, a mortgage lender, reported the biggest monthly growth so far in this year at 1.3%, pushing its annual rate of growth to 4.8%.
The average price of a house has reached a new record high.
Amanda Bryden, from Halifax, says that positive employment figures and lower interest rates are boosting demand.
However, she warned that the higher borrowing rates compared with recent years may temper growth over the next few months.
Frasers successfully navigates through another acquisition contested
Frasers Group shares fell 1.21% following its announcement of an offer to purchase Norwegian sporting goods retailer XXL.
This move fits into CEO Mike Ashley’s strategy of challenging corporate decisions he believes are damaging to value, such as controversial issues regarding rights.
The bid is similar to the situations at Boohoo, Mulberry and Mulberry where Frasers demanded changes in strategy and board composition.
Frasers has continued to pursue acquisitions as a means of growth, despite withdrawing its original offer after it opposed a share issue. This shows its commitment to reshaping the global retail industry.
London’s other notable traders
Severn Trent and United Utilities are both water companies that underperform on today’s FTSE 100. Jefferies has downgraded both stocks citing more balanced risks-rewards outlooks for each.
AJ Bell : The shares of this investment platform fell by nearly 4% after a downward revision from Deutsche Bank. Analysts have noted that shares are now trading around fair value and limiting their potential to gain further.
National World has risen over 5%. The group owns the Yorkshire Post as well as The Scotsman. This rally comes after news that an Irish media company, Media Concierge owned several newspapers.
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