Shares in Darktrace will be in focus today after it was approached by a US private equity giant.
The cyber-security group confirmed last night after markets closed that it had been approached by Thoma Bravo.
Shares are expected to soar at the bell this morning on hopes the discussions between the two amount to a firm offer.
Talks: Cyber-security group Darktrace confirmed last night after markets closed that it had been approached by Thoma Bravo
Darktrace, led by chief executive Poppy Gustafsson, said: ‘Discussions are at a preliminary stage and there can be no certainty that any offer will be made, nor as to the terms of any such offer.’
Thoma Bravo has until September 15 to make a bid.
If Darktrace were to be taken private, it would be another hammer blow for the London stock exchange, which has been plundered by buyout sharks since the Covid-19 pandemic began.
The tech firm floated in April last year at 250p, rising to 945p in October 2021, before falling back to 414.8p after a slide of 2.7 per cent, or 11.6p, to 414.8p yesterday before news of the takeover talks broke. That values it at around £3billion.
Traders will also be eyeing Ted Baker shares amid reports that the US company behind Reebok is closing in on a £200million takeover.
According to Sky News, the board of Ted Baker is set to recommend a 110p-a-share offer from Authentic Brands Group (ABG), which is run by Canadian billionaire Jamie Salter. The deal could be announced as early as today.
The price is considerably lower than the 160p that ABG was preparing to offer in May. But it is higher than last night’s closing price of 93.1p (up 4.7 per cent, or 4.2p) and the low of 69p in July.
Stock Watch – Treatt
Treatt shares hit a two-year low after a profit warning.
The ingredients firm said business had been hit by lower demand for tea in the US as well as Covid-19 restrictions in China. Profit margins were also dented by ‘significant’ cost inflation and the ‘rapid devaluation’ of the pound against the US dollar.
Treatt expects a profit of £15million-£15.3million for the year to the end of September, down from previous forecasts of around £21.7millio.
Shares crashed 33.6 per cent, or 270p, to 533p.
AstraZeneca received a shot in the arm following positive data from a clinical trial of one of its key cancer drugs.
The FTSE 100 pharma giant rose 2.3 per cent, or 250p, to 10962p after reporting its Enhertu treatment showed a ‘statistically significant and clinically meaningful improvement’ in the survival of patients with an advanced form of breast cancer who had previously been treated for the disease using a different therapy.
The results mean patients treated with the drug can live longer without their disease worsening, and overall survivability also improved.
The trial results are another boost for Enhertu, which was developed by AstraZeneca and Japanese partner Daiichi Sankyo.
Last week, the drug secured approval from US regulators for use in both a type of breast cancer and an aggressive form of lung cancer. Brokers have estimated the treatment could generate billions in sales.
The news also appeared to lift sentiment across the sector, with fellow blue-chip pharma firm Hikma rising 1.4 per cent, or 22p, to 1554.5p. Animal drug group Dechra Pharma also rose 1.7 per cent, or 62p, to 3630p.
But Astra’s main UK rival GSK fell 3 per cent, or 44p, to 1406p, and its consumer healthcare spin-off Haleon, the owner of Sensodyne toothpaste, dropped 1.8 per cent, or 4.9p, to 266.7p.
GSK and Haleon have been under pressure amid mounting investor concerns they may get caught up in a lawsuit involving a heartburn drug in the US.
GSK has been connected with impending personal injury lawsuits concerning Zantac, a once-popular drug in the US and the UK, which was pulled from shelves in 2019 amid fears it contained a chemical that caused cancer.
The decline means Haleon’s shares have fallen 21 per cent since they listed last month, leaving it worth less than £25billion, half the £50billion Unilever offered for the business earlier this year.
The FTSE 100 was up 0.1 per cent, or 8.26 points, to 7509.15 and the FTSE 250 rose 0.2 per cent, or 43.8 points, to 20382.76.
