Wednesday 21 February 2018

Kenmare forges ahead by 8.7pc on takeover rumours

Donal O'Donovan

Donal O'Donovan

KENMARE Resources was the big mover in the Dublin market, rising sharply on speculation the mining business could be a takeover target.

Shares in Kenmare closed up a hefty 8.7pc at 69 cent each yesterday to value the business at a whopping €1.66bn.

Kenmare declined to comment on the latest speculation, and has not made any announcements to the markets regarding the situation.

Speculation is understood to have been sparked by increased volumes of Kenmare shares being traded in recent sessions.

If a deal is in the offing, global mining giant Rio Tinto is seen as the most likely buyer.

Shares in AIB were also up strongly, rising 10.25pc, and share in INM, the owner of this news paper, were also active, up 9.37pc to 27c each.

Elsewhere however, trading in Dublin was fairly muted, and the ISEQ index of Irish shares bucked the European trend to close down on the day, though only slightly.

That was out of line with the picture elsewhere, where shares and commodities rallied in response to Sunday night's news from Athens.

Stock markets were lifted after Greek lawmakers committed the country to further austerity in exchange for a new bailout on Sunday night.

In Europe the Stoxx Europe 600 Index closed up 0.7pc. The FTSE index of UK shares closed up 0.9pc and in Frankfurt, the DAX was up 0.7pc.

Even the better tone could not mask signs nervousness, and the European banking sector underperformed.

The sector is seen as most at risk if the Greek crisis starts to unravel again.

In contrast, US banks outperformed the rising stock markets there.

In fact the big mover in the markets had nothing to do with a Greek relief rally and, as in Ireland, takeover talk was the big driver.

Shares in telecom provider Cable & Wireless, surged 45pc after Vodafone confirmed it is considering a bid for the business. Vodafone shares were also up, though only by 1pc.

Google shares were up 1.2pc to $613.26 as the US tech giant was granted approval from European regulators for a $12.5bn takeover of Motorola Mobility.

Shares in Apple rose 1.5pc, and passed the $500 mark for the first time on speculation it could win a challenge against technology used by rival Samsung.

Irish Independent

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