RAMSEY CROOKALL & CO

MIDDAY REPORT

16 AUGUST 2010

Stocks have edged lower in early dealings with acquisition activity the main point of interest.

Cairn Energy moves ahead after saying it has sold a 51% stake in its Indian business to mining giant Vedanta for $8.5 billion and will result in a cash windfall for shareholders on the Scottish oil explorer. The money will give it financial flexibility to focus on a active multi year exploration and drilling programme in Greenland and also consider ‘further material growth opportunities’.

Insurer Aviva is 2p lower at 385p. It has outlined its reasons for rejecting a proposal from rival RSA to acquire Aviva’s general insurance businesses in the UK, Ireland and Canada. Aviva said it received a conditional proposal for RSA to buy the assets for £5 billion on Wednesday, but rejected the proposal as it considered that ‘the highest value to shareholders will be delivered by retaining these businesses within the group’.

Oil services group Hunting is to acquire Innova-Extel, a Texas based supplier of ‘harsh environment’ electronics technology for $125 million.





THE FTSE AT 12.00 IS DOWN 8 @ 5266

THE DOW JONES CLOSED DOWN 16 @ 10,303

THE NASDAQ COMP CLOSED DOWN 16 @ 2173

Exchange Rate

GBP – USD 1. 5591

GBP – EUR 1. 2162