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Reports UK

UK stock market morning note (June 20, 2014)

June 20, 2014, Friday, 11:13 GMT | 06:13 EST | 14:43 IST | 17:13 SGT
Contributed by SVS Securities

The FTSE 100 is called to open slightly higher this morning although investor sentiment is likely to be cautious as we end the trading week following the lack of clear direction overnight from Wall Street and in Asia. The economic diary today focuses on the UK with the release of the public sector borrowing figures. Commodity prices are firmer and on the foreign exchanges, the dollar is weaker against the pound, euro and yen with sterling now holding the 1.70 level.


Company Announcements

Lloyds Banking Group

It has confirmed that the offer price for the TSB IPO has been set at 260p per share which will give TSB a market value of GBP1.3bn. Due to investor demand, the offer size has been raised from 25% to 35%. Approximately 30% of the offer has been allocated to retail investors under the Intermediaries Offer. Gross proceeds realised by Lloyds will amount to GBP455m. Conditional dealings in TSB will commence today on the London Stock Exchange with admission and the start of unconditional dealings expected to take place on 25 June 2014 under the ticker TSB.

Debenhams

IMS showed lfl sales up 0.7% for the 14 weeks to 7 June and down 1% over 15 weeks with continued growth in online and a strong performance from its international business. Gross margin guidance for the full year is unchanged and it noted its strategy to refocus promotional activity delivering a higher full price sell-through with its summer sale starting two weeks later than last year. Trials of new concessions including Sports Direct and Costa are to start before the year end. It noted that whilst it is clear consumers are aware of improvements in economic indicators, they are not seeing a significant improvement in disposable income, adding that its outlook for the full year remains unchanged.

Shire

In response to press speculation, AbbVie Inc. confirms that it made an indicative approach to Shire with a merger proposal which was rejected by the latter. AbbVie noted that its third and latest cash and share proposal when made represented an indicative offer of GBP46.26 for each Shire share. AbbVie added that there can be no certainty that any firm offer will be made and discussions are no longer ongoing.