European markets opened on a mixed note on Friday as investors digested a blend of corporate news and economic data.
London’s FTSE 100 slipped by 0.13%, losing over 11 points to 8,338, while Germany’s DAX mirrored the trend, shedding 0.13%.
In contrast, France’s CAC 40 climbed 0.28%, and Spain’s IBEX edged up by 0.018%.
The pan-European STOXX 600 hovered just below flat at 9:20 am GMT+1, down by 0.031%.
Aviva’s sweetened deal boosts Direct Line shares
Direct Line Group’s shares surged 7.6% to £2.53 after FTSE 100 insurer Aviva announced a £3.6bn cash-and-shares bid to acquire its rival.
The revised offer of £2.75 per share represents a 73% premium to Direct Line’s closing price before initial discussions were revealed.
The company had earlier rejected a £2.50 per share bid, arguing it could independently revive its performance after years of underwhelming results.
In a joint statement, both companies highlighted the significant synergies the merger could deliver, potentially unlocking substantial value for shareholders.
Aviva has until Christmas Day to make a firm offer or walk away.
UK house prices report the largest monthly increase this year
UK house prices continued their upward trajectory in November, marking a fifth consecutive monthly rise.
Mortgage lender Halifax reported a 1.3% monthly increase, the largest so far this year, pushing the annual growth rate to 4.8%.
The average house price hit a record £298,083.
Positive employment data and easing interest rates have bolstered demand, according to Halifax’s Amanda Bryden.
She cautioned, however, that higher borrowing costs compared to recent years could temper growth in the months ahead.
Frasers navigates another contested acquisition
Frasers Group’s shares dipped 1.21% after it announced an offer to acquire Norwegian sporting goods retailer XXL.
The move is seen as part of CEO Mike Ashley’s broader strategy to challenge corporate actions he deems value-destructive, including controversial rights issues.
This bid mirrors similar situations with Boohoo and Mulberry, where Frasers pushed for changes in board composition and strategy.
While it withdrew its offer for Mulberry after opposing a share issue, Frasers continues to actively pursue growth through acquisitions, signalling its aggressive stance in reshaping global retail.
Other notable movers in London trading
Severn Trent and United Utilities: Both water companies are underperforming on the FTSE 100 today. Jefferies downgraded the stocks, citing a more balanced risk-reward outlook for each.
AJ Bell: Shares of the investment platform have dropped nearly 4% following a downgrade by Deutsche Bank. Analysts noted that the stock is now trading at approximately fair value, limiting its potential for further gains.
National World: The media group, which owns titles such as the Yorkshire Post and The Scotsman, has surged over 5%. The rally follows news of a takeover agreement with Media Concierge, an Irish company that owns several newspapers.
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