RAMSEY CROOKALL & CO

MORNING REPORT 21 February 2011

London has recovered its early losses with a smattering of bid talk and some decent trading updates encouraging a few buyers. The US market will be closed for Presidents' Day

Invensys is the top performer after weekend reports it is being stalked by international rivals considering a bid for the company. City sources say predators include Honeywell and Emerson Electric of the US, ABB of Switzerland, Alstom of France, Germany's Siemens and two Chinese firms, CSR and CNR.

Lonmin has also picked up on a story that Xstrata chief executive Mick Davis is still keen on acquiring the platinum miner.

Elsewhere, Royal Dutch Shell has agreed to sell most of its stake in nearly all its retail and distribution businesses in Africa to a private equity fund for around $1bn (£616m).

Sector peer Hammerson reported adjusted profit before tax of £144.5m for 2010, up from £130.0m in 2009. Profit adjusted for revaluations grew by 11% to £144.5m and adjusted net asset value per share had risen 17.6% to 495p by the end of 2010. Net rental income fell 3% to £284.7m, but was up 3.5% on a like for like basis. "This is a strong set of results which reinforces the strategy we are pursuing,” chairman John Nelson said.

Finally, spirits brands giant Diageo is to buy Mey Içki, the leading spirits producer and distributor in Turkey. The company is being acquired for an enterprise value of TL3,300m (£1,300m) from investment firm TPG Capital and Actera. The transaction is expected to complete in the second half of 2011, subject to regulatory clearances.

THE FTSE 100 AT 9.20 IS UP 22 @ 6104

THE DOW JONES IS CLOSED FOR PRESIDENTS DAY

THE NASDAQ COMP CLOSED FOR PRESIDENTS DAY

Exchange Rates

GBP – USD 1.6222 GBP - EURO 1.1846