FTSE 100 movers: IAG flying high on hopeful Aer Lingus bid, Supermarkets lower on dividend concerns

IAG, owner of British Airways, climbed after Irish carrier Aer Lingus confirmed it has received a third takeover bid from its Anglo-Spanish rival. IAG has offered Aer Lingus €2.50 a share in cash plus a dividend of €0.05 a share, up from the previous pitch of €2.40 in cash and €2.30 before that.

Shire was among the risers following NPS Pharmaceuticals, a firm Shire is currently in the process of acquiring, receiving regulatory approval for a rare disease drug. Shire also received good news about one of its own drugs, Natpara, a drug for the rare hormone disorder hyperparathyroidism, set to become available in the second quarter of 2015.

The group's chief executive officer, Flemming Ornskov, said: “The Natpara label is in line with our expectations, and we believe this approval further validates Shire's decision to acquire NPS Pharma, which is an excellent strategic fit allowing us to leverage our market expertise, core capabilities in rare disease patient management, and global footprint.”

London Stock Exchange traded higher after analysts at RBC Capital lifted the group’s target price from £21.50 to £25.00 in a research note released on Monday morning.

The publishing of the Capita Dividend Report on Monday damaged Tesco and Morrison shares. Nicla Di Palma, equity analyst at Brewin Dolphin said: “We do not believe dividends are safe at any of the UK supermarkets.”

“At Tesco the interim dividend was cut by 75% and the final dividend was cancelled. This year, shareholders will receive a dividend which is 92% lower than what they received last year. We do not believe investors will see significant growth in their Tesco dividend for a few years.”

“At Morrison, CEO Dalton Philips promised investors a 5% increase in dividend this year. Mr Philips will be leaving the company in March this year. We expect a new CEO to cut the dividend to invest in the customer offer.”

Risers

International Consolidated Airlines Group SA (CDI) (IAG) 564.00p +5.22%
easyJet (EZJ) 1,773.00p +2.19%
Dixons Carphone (DC.) 433.50p +2.02%
Mondi (MNDI) 1,173.00p +2.00%
Royal Mail (RMG) 449.50p +1.93%
Ashtead Group (AHT) 1,114.00p +1.92%
Shire Plc (SHP) 4,904.00p +1.83%
London Stock Exchange Group (LSE) 2,409.00p +1.47%
Persimmon (PSN) 1,546.00p +1.24%
Schroders (SDR) 2,888.00p +1.16%

Fallers
Coca-Cola HBC AG (CDI) (CCH) 1,078.00p -3.06%
Tesco (TSCO) 229.25p -2.57%
Babcock International Group (BAB) 1,029.00p -2.28%
Fresnillo (FRES) 877.00p -2.23%
Hargreaves Lansdown (HL.) 1,001.00p -2.05%
CRH (CRH) 1,648.00p -1.90%
Intertek Group (ITRK) 2,291.00p -1.59%
Morrison (Wm) Supermarkets (MRW) 196.30p -1.41%
Aggreko (AGK) 1,522.00p -1.36%
Tullow Oil (TLW) 366.40p -1.32%