RAMSEY CROOKALL & CO

MORNING REPORT

6 DECEMBER 2010

The prospect of mergers and acquisitions activity is livening up an otherwise sedate opening session for London.

De La Rue has received a bid, the banknote printer confirmed Monday, thought to be from French rival Oberthur Technologies. Talk is the all-cash deal valued the UK company, also responsible for printing UK passports, at around £800m, a 25% premium to Friday’s price tag of £641m.

Punch Taverns, Britain’s biggest pub company, is on the rise on press reports that private equity group CVC has the debt-heavy group in its sights. Enterprise Inns rises in sympathy.

Elsewhere, Mobile phone network operator Vodafone is wanted as news filters out that it is close to selling its 44% stake in SFR, the French mobile phone group, for £7bn.

Rio Tinto has offered £2.2bn (A$3.5bn) for Riversdale Mining, a Sydney-based firm with interests in African coal. Riversdale confirmed Monday it had held talks with the Anglo-Australian mining giant about a deal valuing the business at A$15 a share.

Engine designer Rolls-Royce has announced a clutch of contract wins for energy projects across the globe. The contract wins are worth $110m in total.

The European Commission has granted marketing authorisation to AstraZeneca’s Brilique blood thinning drug. The drug will be in competition with Plavix, the second best selling drug in the world.

Finally, the drilling programme of North Falklands oil explorer Desire Petroleum continues to frustrate, as the company has plugged and abandoned the 14/15-2 Rachel North well. Desire’s share price virtually halved in early trading, while Rockhopper Exploration, which has a 7.5% interest in the well, also takes on a few dents.

THE FTSE 100 AT 10.00 IS UP 3 @ 5748

THE DOW JONES CLOSED UP 19 @ 11,382

THE NASDAQ COMP CLOSED UP 12 @ 2591

Exchange Rates

GBP – USD 1.57 GBP – EUR 1.17