Buyout report boosts Meggitt shares

Engineering group Meggitt was the latest FTSE 100 company to be highlighted as a takeover target on a day that the London market staged a rally of more than 1 per cent.

The London Stock Exchange. The FTSE 100 was in bullish mood, up 74.22 points. Picture: Getty

Shares in Meggitt rose almost 10 per cent after a report that America’s United Technologies could be preparing a 625p-a-share cash offer.

Mark Ward, head of execution trading at Sanlam Securities, said: “I don’t think there will be a huge amount of people going long on the back of this but people who were short would be scrambling to cover.”

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The group added 46.9p at 537p. The wider FTSE 100 was also in bullish mood, up 74.22 points or 1.1 per cent at 6,784.67 after news that UK unemployment was falling and the Chinese economy had grown at a slightly better-than-forecast 7.5 per cent a year.

Hopes for stronger Chinese demand lifted commodities giant Glencore by nearly 4 per cent, or 12.6p, to 359p, while miners Anglo American and Rio Tinto were also up – the former by 50p to 1,564p and the latter by 90p to 3,334.5p after reporting a “very strong first half”.

Asia-focused Prudential benefited too, adding 29.5p to 1,394p.

EasyJet was given a lift after Numis Securities said a recent slump in the low-cost airline’s share price looked to be overdone. With the broker hopeful of a reassuring update from the carrier later this month, shares recovered with a rise of 80p to 1,357p, up 6 per cent.

And engine-maker Rolls Royce was powering ahead as it reported a raft of contract wins for its jets from the Farnborough Air Show. Its shares were 20p higher at 1,061p.

Royal Mail was the biggest loser on a shortened fallers’ board after it said it has received a notice from French competition authorities alleging breaches of anti-trust rules by one of its subsidiaries, GLS France. Shares were off 9.2p to 479.5p.