MARKET REPORT: BT surges on reports it may sell BT Sports to Dazn

Shares in BT climbed following reports that the telecoms giant is in talks with sports streaming firm Dazn to sell its BT Sports arm.

Dazn, a start-up backed by Len Blavatnik, the UK’s richest man, is the front-runner to take over the business in a deal that could be announced within weeks and could attract a price tag of hundreds of millions of pounds, according to the Financial Times.

A deal will give Dazn broadcast rights to a range of sports content including English Premier League football as well as rugby union and some cricket matches.

Takeover talk: BT Sport would give Dazn broadcast rights to a litany of sports content including English Premier League football as well as rugby union and some cricket matches

BT originally put its BT Sport arm up for sale in April as part of boss Philip Jansen’s plan to focus on its broadband and mobile networks.

The tie-up will be a coup for a firm aiming to become the ‘Netflix of sport’. It would also cement its status as a challenger to Sky, which it has outbid for broadcasting rights for Italy’s top football league this year. BT shares jumped 2.7 per cent, or 4.2p, to 159.5p.

Stock Watch –  M&C Saatchi

M&C Saatchi, which was founded by advertising moguls Maurice and Charles Saatchi, has upgraded expectations for 2021 after half-year profits rose above levels before the pandemic.

For the six months to the end of June, the company reported that profits had rocketed 420 per cent to £10.5million, while revenues bounced 14.2 per cent higher to £118.1million.

The company said that it now expects its full-year profits to be ‘substantially ahead of consensus’.

Shares in the firm yesterday jumped by 3.4 per cent, or 5p, to 151p on the back of the six-month results.  

Meanwhile, hedge fund Pershing Square was among the FTSE 100’s biggest risers after one of its largest holdings, Universal Music Group, soared on its debut on the Amsterdam stock exchange.

Shares in Universal, the world’s biggest record label which owns music catalogues of artists including The Beatles and Bob Dylan, climbed to €25.10, 35.6 per cent higher than their reference price of €18.50.

Pershing, run by billionaire activist investor Bill Ackman, surged 5 per cent, or 130p, to 2725p.

Ackman previously attempted to invest in Universal in July through a different vehicle but was blocked by US regulators. However, the gains for Pershing will be seen as a vindication of his pursuit.

The FTSE 100 bounced up 1.1 per cent, or 77.07 points, to 6980.98. The FTSE 250, meanwhile, was up 0.9 per cent, or 209.67 points, to 23,611.39. Markets appeared to have been lifted by bargain hunting activity following Monday’s sell-off.

Oil giant Shell rose 3.8 per cent, or 54p, to 1484.60p after signing a £6.9billion deal to sell its business in the Permian basin, a major oil and gas area in the south-western US, to American natural gas group Conoco Phillips.

Cash from the sale will be used to fund around £5.1bn in ‘additional shareholder distributions’, with the transaction expected to close in the fourth quarter.

Funeral director Dignity said the average amount spent on its funerals had increased in the first half of 2021 as lockdown restrictions eased.

But it fell 2.8 per cent, or 21p, to 722p after it said the number of deaths had declined 8pc to 340,000 in the six months to June 25. 

Compass Group was also on the slide, dropping by 2.2 per cent, or 33p, to 1453p as it said it was cautious about the outlook for its company catering arm given what it said was ‘continued uncertainty’ over the pace of offices reopening in its major markets.

Online pension provider Pension Bee was little moved at 147p as a 109 per cent rise in revenue to £5.4million in the first half of 2021 was offset by widening losses, which more than doubled to £12.8million from £5.2million in the same period a year ago.

Pension Bee, which allows consumers to transfer, merge and manage pensions, raised £55million at its initial public offering (IPO) amid expectations that it will be on ‘a path to profitability’ by the end of 2023.

Elsewhere, computer chip maker Alphawave rocketed 19.4 per cent, or 66.4p, to 408p after upping its full-year guidance citing ‘strong global demand’.

The firm, which made its debut on the London market in May, also reported that revenues in the six months to the end of June had jumped 140 per cent to £20.2million.

This post first appeared on Dailymail.co.uk