City news: AB InBev, TalkTalk, Barratt Developments, Tullett Prebon
BUDWEISER and Stella Artois brewer AB InBev has agreed to buy Grolsh and Peroni rival SABMiller in a £71billion deal that will see the group supplying nearly a third of the world’s beer.
AB InBev has agreed to buy rival brewer SABMiller in a £71bn deal
Investors in FTSE 100 giant SAB will get £44 a share in cash, while AB InBev has agreed to sell SAB’s 58 per cent stake in US venture MillerCoors to Molson Coors for £8billion to address competition concerns.
AB InBev expects to make annual cost savings of at least £920million.
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TalkTalk shares have soared as the company recovers from last month's cyber attack
TalkTalk shares soar
TALKTALK shares soared 13 per cent or 28¾p to 246p as the broadband provider signalled much higher profits despite bracing itself for a £35million hit from last month’s cyber attack.
TalkTalk said early data on customers defecting was “encouraging” and from next month will offer customers a choice of free upgraded services.
The company raised its interim dividend payout by 15 per cent as second quarter revenue growth accelerated to 5.9 per cent.
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Barratt Developments have recruited a further 250 graduates after a solid financial year
Sales rise at Barratt Developments
BARRATT Developments laid the foundations for a healthy annual profit as sales rose 20.7 per cent to £2.5billion between July and November.
The housebuilder has recruited a further 250 graduates, trainees and apprentices as it acknowledged a continued shortage in skilled labour.
Costs are expected to rise by 3-4 per cent this year.
It reported “good consumer demand” for its homes across the country, with Help to Buy remaining an important scheme.
Chief executive David Thomas said: “We have made a strong start to the year.”
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Tullett in £1bn deal
INTERDEALER broker Tullett Prebon is buying bigger UK rival Icap’s voice-broking and information business in a £1.1billion deal to help combat shrinking trading volumes.
Hundreds of support staff jobs are at risk as the enlarged group, which matches buyers and sellers of currencies and bonds, targets £60million cost savings.
Tullett shareholders will own 44 per cent of the new company.
Tullett chairman Rupert Robson said: “We shall benefit from greater scale, resources for technological development and new product development.”