RAMSEY CROOKALL & CO

EVENING REPORT

18 AUGUST 2010

Losses were trimmed this afternoon but the FTSE remained in the red, due in no small part to the weakness of mining stocks.

Anglo-Australian mining giant BHP Billiton was 60p lower at £18.57 after launching a hostile bid for Canadian potash producer Potash Corporation worth about £26 billion after its initial offer was rejected.

PotashCorp yesterday spurned a $130 a share offer from BHP, but the Anglo- Australian group today said it was submitting the offer directly to its shareholders as it seeks to build on it’s exposure to fertilisers. Few market observers believe $130 a share will be enough, however, raising the prospect of a higher bid some time in the future.

Diageo was down 12p at £10.93 after the Smirnoff vodka and Guinness firm was downgraded.

Shares in Inmarsat, which operates satellites for mobile phones, moved ahead after it said it is to begin work on a programme to upgrade wireless capabilities in North America worth $337.5 million.

Consolidation seems to be on the agenda in the insurance sector and Legal & General is the latest company to be put into play by gossip mongers, with Zurich Financial said to be the company eyeing up the UK insurer. The shares were up 2½p at 96p.

Car dealer Lookers hailed a record trading performance in the first half of 2010 as profits soared despite difficult conditions. Lookers, which sells new and second hand cars and parts, posted a pre tax profit of £21.4 million in the six months to June 30. THE FTSE CLOSED DOWN 47 @ 5302

THE DOW JONES AT 4.30 IS DOWN 24 @ 10,380

THE NASDAQ COMP AT 4.30 IS DOWN 4 @ 2205

Exchange Rate

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