BT mulls joint venture with Discovery, Playtech takeover saga continues
London pre-open
The FTSE 100 was being called to open 13.2 points lower ahead of the bell on Thursday after closing 0.63% higher in the previous session at 7,583.00.
Stocks to watch
Media firm Future said on Thursday that it continued to perform well in the four months ended 31 January, with ongoing momentum in digital advertising more than offsetting exceptional year-on-year comparators in audience and eCommerce.
Future stated trading in the period was in line with expectations, with good conversion to both profit and cash, and underpinned its upgraded full-year outlook, despite continued macro uncertainties and inflationary pressures.
BT said it was in talks with Discovery Inc about forming a sports joint venture as the company reported a 3% drop in profit for the first nine months of the year.
BT said it was in exclusive discussions to combine its sports business with Discovery's Eurosport UK operation to forge a 50/50 joint venture. The companies are targeting to complete talks in the first quarter for the new company to become operational later in 2022.
The Playtech takeover saga continued on Thursday as a fresh potential bid for the gambling software maker emerged, hours after a £2.7bn offer from Australia's Aristocrat Leisure collapsed.
TT Bond Partners, which advised on an earlier bid for Playtech from Gopher Investments, has been given consent by UK-listed Playtech to release it from restrictions that would stop it from tabling a further offer.
"There can be no certainty as to whether this will result in an offer for the company, nor as to the terms on which any offer might be made. However, any offer, if made, is likely to be in cash," Playtech said.
Newspaper round-up
The Treasury is scrambling to complete 11th-hour plans capable of softening a national cost of living crisis, including a £200 rebate on energy bills and more help for the poorest households. No 10 and the Treasury have been under pressure from Tory MPs to act as millions of households brace for a record hike in energy bills from April, and the prospect of rising mortgage rates and tax increases. - Guardian
Companies handed a combined £1.3bn in controversial fast-track Covid contracts with minimal scrutiny also claimed at least £1.0m in furlough grants, it can be revealed. Analysis of the accounts of companies that won lucrative emergency contracts to supply personal protective equipment (PPE) to the NHS during the height of the pandemic shows 12 also claimed funds to put staff on furlough at taxpayers' expense. - Guardian
KP Snacks has warned there may be a shortage of some of its popular crisps and nuts following a ransomware attack. The company, which is behind brands such as Skips, Nik Naks, Hula Hoops, McCoy's crisps and KP Nuts, told its retail customers to brace for delays and cancellations of deliveries. - Telegraph
Investors from around the world are expected to spend £60.0bn on London offices over the next five years in a post-Brexit, post-pandemic vote of confidence in the capital. American property investors will be the most acquisitive, Knight Frank says in its latest London Report. They will pour £15.0bn into London offices between now and 2027, the property agent estimates. Funds from Germany, China, Singapore and South Korea are also expected to be active. - The Times
Unsecured creditors have been left £30.4m out of pocket from the pre-pack administration of TM Lewin that resulted in the closure of all of the shirt company's shops. TM Lewin was bought in May 2020 for about £25.0m by Torque Brands, an investment vehicle led by James Cox, founder of Simba Sleep, and backed by Allan Leighton, chairman of The Co-operative Group. Only seven weeks later the company was put into a pre-pack administration that shut all its 66 stores and resulted in 600 job losses. At the time, Cox said that lockdowns had meant the business was no longer viable in its present form and that it would focus on an online model instead. - The Times
US close
Wall Street's main indices booked their fourth consecutive day of gains on Wednesday after a session that saw investors digesting a slew of corporate earnings and a surprise fall in employment.
At the close, the Dow Jones Industrial Average was up 0.63% at 35,629.33, as the S&P 500 added 0.94% to 4,589.38 and the Nasdaq Composite was ahead 0.5% at 14,417.55.