Punters were taking bets on the bookies today, as Playtech hinted it is mulling deals in the sector.
Playtech, which powers online sports betting, casinos and bingo, said today it was “reviewing” what do to with its €527.4 million (£313.4 million) cash pile.
Chairman Alan Jackson said in today’s AGM statement that the company is considering “further value-enhancing acquisitions, joint ventures and partnerships”.
The talk saw former joint-venture partner William Hill climb 2p to 327.9p, and struggling fellow online gaming specialist Bwin.Party put on 1.1p to 115.2p.
Ladbrokes rose 2.1p to 135.6p, with some in the market speculating that Playtech, up 9.5p at 593.5p, could team up with a private-equity house to make a bid for the down-on-its-luck bookmaker. Ladbrokes has long been talked about as a potential takeover target, having struggled to adapt to the switch to digital.
Microchip designer ARM Holdings was one of the best performers on the Footsie, up 14.5p at 859.25p. Scribblers were left impressed by the Cambridge firm’s analyst meeting yesterday, heralding a slew of positive notes today.
Oil rigs designer and operator Petrofac climbed 19p to 1212.5p after a reluctant upgrade from Barclays. Mike Pickup at the bank started his note by saying “there are many reasons not to own Petrofac”, but went on to admit that the company’s recent profit warning and subsequent price fall means there is value in the shares.
AstraZeneca rose 40.5p to 4348.5p after UBS set a bullish target price of £50, a clear backing of the drug giant’s decision to snub Pfizer’s advances.
The Footsie continued to crawl along the bottom, held back by ex-dividend stocks such as HSBC, off 11.5p to 615.6p, and Intertek, 39p lower at 2887.5p. The FTSE 100 was down 15.5 points at 6786.5. Utility supplier Telecom Plus leapt to the top of the mid-cap index after revealing profit jumped by 25.3% to £44.6 million in 2013. The company dialled up 160p to 1553p.
Stobart fell to a pre-tax operating loss of £10.2 million last year as it counted the cost of restructuring its business. Stobart, down 2.5p at 133.25p, sold a controlling stake in iconic trucking business Eddie Stobart to focus instead on infrastructure and support services.
UK Mail, flat at 609.75p, delivered a 7% rise in revenue and a 16.2% rise in full-year profit to £219.9 million. Rival Royal Mail, up 2.5p at 572.25p, reports tomorrow.
