RAMSEY CROOKALL & CO EVENING REPORT

7 SEPTEMBER 2010

It’s a case of ‘another day, another bid rumour’ for London, with bid speculation about engineering group Invensys and oil explorer Tullow Oil providing a bit of cheer to a subdued market.

The rumour-mongers are suggesting that the UK engineering conglomerate could be the subject of a 350p per share bid, possibly from US holding company General Electric or Swiss powerhouse ABB. Invensys shares have closed 18p higher at 269p.

As for Tullow, that’s supposed to be in the sights of a Chinese energy group. A £20 per share valuation has been mentioned and the shares have risen a further 46p to stand at £12.28.

Meanwhile, yesterday’s takeover candidate, telecoms group Cable & Wireless Worldwide, is the biggest faller among FTSE 100 stocks as profit takers exit stage left with their pockets jangling. The shares have fallen 3.6% to 70p.

Elsewhere, Barclays is lower after it confirmed Bob Diamond, head of its investment banking arm, Barclays Capital, will take over as chief executive when John Varley steps down at the end of March next year. Diamond, who has been running the investment banking division since 1997 when it was BZW, becomes president and deputy group chief executive at the beginning of next month.

And HSBC chairman Stephen Green is stepping down after being appointed as Trade Minister.

Finally, Package tour operator TUI Travel is weaker after Goldman Sachs downgraded the stock to “neutral” from “buy”, while Homebase and Argos owner Home Retail is on many people’s sell list in anticipation of the stock losing its FTSE 100 status.

THE FTSE 100 CLOSED DOWN 31 @ 5407

THE DOW JONES AT 4.30 IS DOWN 78 @ 10,369

THE NASDAQ COMP AT 4.30 IS DOWN 14 @ 2219

Exchange Rates

GBP – USD 1. 5306 GBP – EUR 1. 2039