RAMSEY CROOKALL & CO

EVENING REPORT

20 AUGUST 2010

Leading stocks trimmed their losses this afternoon but remained in negative territory, however, despite a strong showing by index heavyweight group BG Group, which is the subject of bid speculation.

Oil giant BG, the fourteenth largest publicly quoted UK listed company by market value, is in demand on rumours that it is being stalked by bigger players in the sector. Anglo Dutch oil giant Royal Dutch Shell has been mentioned as one company that might be preparing a bid of £16.00 per share but other names are also being bandied about, such as Petrobras, Gazprom, Sinopec and Exxon.

South Korean based state-run company KNOC has launched a hostile £18 a share cash bid for Dana, valuing the Aberdeen-based oil company at £1.87 billion.

Mitchells & Butlers is selling a portfolio of 333 non-core pubs for £373 million in cash to a private equity firm so that it can focus on the informal eating out market.

Today’s deal shrinks the firm’s portfolio to 1,580 restaurant’s and food-led pubs with higher growth potential, and provides money to spend on other growth opportunities in the informal eating out market.

Defence products group Cobham has won a contract worth up to $18 million to provide breathing kits for the US Air Force. But the shares are down after a broker downgraded the company saying it prefers rivals Thales and Meggitt.

Transport and logistics group Stobart has become the latest company to warn of the impact of government spending cuts, with its rail division hit by uncertainty over future expenditure.

THE FTSE CLOSED DOWN 16 @ 5195

THE DOW JONES AT 4.30 IS DOWN 104 @ 10,166

THE NASDAQ COMP AT 4.30 IS DOWN 10 @ 2168



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