|Bid||1,095.00 x 0|
|Ask||1,097.00 x 0|
|Day's range||1,086.00 - 1,117.00|
|52-week range||818.60 - 1,183.00|
|Beta (3Y monthly)||0.94|
|PE ratio (TTM)||10.04|
|Earnings date||10 Sep 2019|
|Forward dividend & yield||0.58 (5.26%)|
|1y target est||1,114.38|
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UK stocks advanced on Wednesday on signs of less tension in the U.S.-China trade fight and prospects of more stimulus from central banks, while shares in London Stock Exchange scaled a record high after Hong Kong Exchanges and Clearing's offer. The FTSE 100 rose 1%, its best one-day performance in nearly ten days, while the midcap index added 1.2%. London Stock Exchange took the top spot on the main bourse with a 6% jump after Hong Kong Exchanges and Clearing made a surprise $39 billion takeover approach, a deal that would create a global trading powerhouse.
Galliford Try aims to focus on a smaller, more profitable construction business, which will be easier with the cash boost from a proposed sale of its housing businesses to Bovis Homes, its CEO said on Wednesday. Galliford, like others in the residential housing market, has been hit by a downturn in the UK housing market. It restarted talks to sell its housing businesses to Bovis on Tuesday after a previous proposed offer was improved to 1.08 billion pounds ($1.33 billion) including a cash component.
* European shares rise slightly ahead of ECB * Funds rotate out of defensives, banks continue rally * Galliford rallies after Bovis deal * Wall Street opens lower Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://firstname.lastname@example.org CLOSING SNAPSHOT: BANKS FLY, DEFENSIVES HIT (1538 GMT) It's been another day of heavy rotation from defensive into value sectors, as investors cooled down expectations over central bank policy stimulus ahead of Thursday's ECB meeting, prompting further gains in bond yields. Banks were standout gainers, up 2.1% on the day, while healthcare and food and beverage both fell around 1.2%.
(Bloomberg Opinion) -- Homebuilding has been a better bet than the wider construction business in the U.K. — the former benefits from government subsidies, while the latter is plagued by intense competition for long-run, hard-to-value contracts. Being in both markets has become a headache for Galliford Try Plc. It is now artfully dealing its way out of the problem.On Tuesday, the company said it could sell its homebuilding operations to rival Bovis Homes Group Plc for 1.1 billion pounds ($1.33 billion). That’s 50% more than Galliford’s entire enterprise value as of Monday’s close — proof of investors’ dim view of the construction business rather than evidence that Bovis is overpaying.This deal is yet to be inked. Assuming it happens, it will be a stretch for the purchaser, financially and operationally. Bovis will assume 100 million pounds of Galliford’s debt, plus its pension program (which is, admittedly, fully funded). The acquirer will give the target’s shareholders a 29% stake in the enlarged company and will pay an additional 300 million pounds in cash. To fund that, it will have to sell new shares. Even this will cover only about half of the sum — much of the rest will have to be borrowed.Meanwhile, the buyer is taking on a colossal integration project, adding more people than it currently employs. Given Galliford’s stock has fallen so far, Bovis could probably have stretched to buying the whole company. Luckily it stopped short of that: Combining just the homebuilding is a mammoth job in its own right without adding a construction business too.For now, the market isn’t giving Bovis Chief Executive Officer Greg Fitzgerald the benefit of the doubt. It could scarcely be a worse time for a domestically focused U.K. company to be selling new shares: Investors are hardly rushing to double down on the country’s housing market in a complicated deal ahead of Brexit.Galliford shares rallied a little on Tuesday, although the combined market value of the businesses fell slightly. That may be a sign Galliford is getting something at Bovis’s expense, but the market isn’t sure about the overall value creation here.That looks harsh. The logic of the combination is sound. There are plausible cost savings from joint procurement, and the valuation put on the assets Galliford is selling, about 5.2 times their trailing operating profit, isn’t expensive compared with others in the industry. It’s reassuring, too, that Fitzgerald used to chair Galliford.But whether you’re in homebuilding or construction, attracting investors to what must be the two least attractive sectors in the U.K. economy is going to be a tough sell this side of Brexit.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Bovis Homes Group Plc has restarted talks to buy Galliford Try Plc’s housing division after discussions earlier in the year broke down.The potential deal could see the Galliford’s housing business valued at 975 million pounds ($1.2 billion), plus 100 million pounds of debt, bringing the total valuation with debt to 1.075 billion pounds, the company said in a statement on Tuesday. More work is needed before the tie-up of Bovis and Galliford’s unit Linden Homes and Partnerships & Regeneration divisions could be completed, according to the statement.“While discussions are still at early stages, this potential combination represents an exciting and transformational opportunity to create a leading U.K. housebuilder with enhanced scale,” Greg Fitzgerald, chief executive officer of West Malling, Kent-based Bovis, said in the statement.The possible deal is the latest twist in a long-running courtship between the two companies. The firms were in talks about a potential deal in May, but Galliford rejected the bid that valued the units at 950 million pounds, excluding debt. In 2017, it was Bovis that rebuffed the advances of Galliford, ending merger talks and hiring Fitzgerald as its CEO. Fitzgerald headed Uxbridge, Middlesex-based Galliford for 10 years, a company he joined as a teenager, before leaving in 2015.Try AgainGalliford rose as much as 26% in London trading, the most since 1995, and were almost 14% higher at 9:51 am. Bovis fell as much as 5.6%.Supported by cheap borrowing, a ready supply of land and government incentives, the environment for the country’s housebuilders remains benign. That may change, however, with uncertainty surrounding the departure of the U.K. from the European Union that could bring higher costs of labor and materials and weaker consumer confidence.“While we recognize that there is significant complementarity between the businesses in terms of location, product and culture, we remain cautious of the disruption of integrating two significant businesses together,” Jefferies analyst Glynis Johnson wrote in a note on Tuesday. “We believe the market will question the timing of such a large deal at this stage in the cycle given all the political and economic uncertainties.”Under the deal, Bovis would pay 300 million pounds in cash to Galliford. In addition, Galliford shareholders would receive 0.57406 of Bovis shares per Galliford share, valued at 675 million pounds at yesterday’s close. The firm’s 100 million pounds of 10-year notes and its pension schemes will also transfer to Bovis.The 300 million-pound cash transfer will be financed by new debt and an equity placing by Bovis of 9.99% of capital, the company said in the statement.(Updates with analyst comment in seventh paragraph.)\--With assistance from Lisa Pham.To contact the reporter on this story: Lucca de Paoli in London at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, Patrick HenryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
UK blue-chip shares slipped on Tuesday, as a second set of disappointing data from China this week cemented fears of a slowdown in global economic growth, while gains in the pound amid fading no-deal Brexit worries hit multinational stocks. The FTSE 100 index dipped 0.4%, having suffered its worst day this month in the last session, with equipment rental giant Ashtead falling 3% after in-line results. The more domestically-focussed index of midcaps was flat by 0705 GMT, supported by a 22% jump in Galliford Try after the construction company said it had restarted preliminary talks to sell its residential units to housebuilder Bovis Homes.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Stock futures are pointing to a flat to slightly negative open as investors stick to the sidelines ahead of the ECB's monetary policy meeting on Thursday, where the central bank is widely expected to come up with a string of easing measures. All the major stock futures are down 0.1%.
Britain's Galliford Try has restarted talks to sell its residential housing businesses to Bovis Homes after Bovis nudged up its proposed offer to 1.08 billion pounds ($1.34 billion) and included a cash component. The talks, which mark a turnaround in fortunes since 2017 when Bovis rejected a bid approach https://www.reuters.com/article/bovis-ma-galliford/uk-builder-bovis-shares-jump-8-pct-on-galliford-try-talks-idUSL5N1GQ1JE from Galliford, come amid a slowdown in Britain's housing market, partly due to uncertainty caused by the country's departure from the European Union. A deal would also allow Galliford to concentrate on turning round its other construction interests.
The talks, which mark a turnaround in fortunes since 2017 when Bovis rejected a bid approach https://www.reuters.com/article/bovis-ma-galliford/uk-builder-bovis-shares-jump-8-pct-on-galliford-try-talks-idUSL5N1GQ1JE from Galliford, come amid a slowdown in Britain's housing market, partly due to uncertainty caused by the country's departure from the European Union. A deal would also allow Galliford to concentrate on turning round its other construction interests. Earlier this year, Bovis was in talks to buy Galliford's Linden Homes and Partnerships & Regeneration divisions for 950 million pounds in shares and the assumption of 100 million pounds in debt, but discussions ended after Galliford said they were not in its shareholders' interests.
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Barratt Developments' efforts to cut costs by making changes to the design of the houses it builds will help the company to report annual profit that beats market expectations, the company said on Wednesday. The company has also been reducing its exposure to central London in order to focus on outer parts of the capital where houses are more affordable for many Britons. Britain's biggest housebuilder expects pretax profit of 910 million pounds ($1.13 billion) for the period ended June 30, compared with 835 million pounds a year earlier.
Housebuilder Bovis said on Tuesday it expected to post a higher first-half profit after selling more affordable homes at increased prices and saw solid demand for the year, bucking the trend of a wider anaemic real estate market. Britain's property market has been hurt by a slowdown in European economic growth and prospective home buyers holding out for house prices to fall further because of the country's chaotic attempts to leave the European Union. While house prices have been rising across the country, prices in London have declined according to various indicators, hit by tax changes and Brexit.
Britain's property market has been hurt by a slowdown in European economic growth and prospective home buyers holding out for house prices to fall further because of the country's chaotic attempts to leave the European Union. While house prices have been rising across the country, prices in London have declined according to various indicators, hit by tax changes and Brexit. Bovis, which builds traditional homes from two-bedroom starter properties to five-bedroom family homes with a focus on the south of the country, excluding London, said it had started the second half with a strong forward sales position and expected a better performance in 2019.
Persimmon, Britain's second-largest homebuilder, suffered a drop in revenue in the first half of the year as it delayed sales closer to the completion of properties in order to improve customer satisfaction. "Perhaps more important is the fact selling prices have kept moving forwards, despite the negative PR Persimmon’s been facing," said Sophie Lund-Yates, Equity Analyst at Hargreaves Lansdown. Persimmon, which builds homes in more than 350 locations in the UK, reported on Thursday a 4.5% fall in revenue to 1.75 billion pounds ($2.2 billion) for the six months ending June 30.
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