FTSE lags global markets ahead of Biden’s $ 6 trillion budget
BT supports an offer from Sisal and the children’s association Barnardo’s to manage the National Lottery, the Italian gaming and entertainment operator announced after the market closed.
This decision pits the telecommunications giant against FTSE 100 peer Vodafone, which backs a competing offer from Sazka Group, the lottery arm of Czech billionaire Karel Komárek, fierce rival of Sisal. CVC buyout company Apollo Global Management has invested € 500 million (£ 430 million) in the Komárek offer.
The National Lottery has been managed by Camelot since its inception in 1994. A 10-year license to conduct the raffle from 2023 will expire later this year. The National Lottery is one of the largest contracts in the UK public sector.
The Sunday Telegraph revealed the surprise offer from Sisal and Barnado earlier this year. Sisal is owned by CVC Capital Partners, which has invested in Six Nations rugby, the Gallagher Premiership and previously Formula 1 racing.
Dean Terry, director of BT, said the telecommunications company “will ensure that the national lottery maximizes the amount of funds raised for good causes.”
Billionaire media mogul Richard Desmond and Indian lottery operator Sugal & Damani are also in the running. Blue Chip BT shares fell 1.65p to 174.85p before the news broke.
Overall, London markets edged up on Friday, but lagged behind their global counterparts. Investors were betting the United States would pull the global economy out of the coronavirus crisis with a $ 6 trillion (£ 4.2 trillion) spending boom, but UK traders have also had to digest discussions that the government could delay a complete easing of restrictions until next month.
The FTSE 100 gained a very slight 2.94 points to 7,022.61, marking a relatively stable trading week although it managed to close above the 7,000 level. Gains were led by builders of homes, including Taylor Wimpey, following Thursday’s slides. The mid cap FTSE 250 The index rose 24.91 points to 22,683.95.
Between companies, home builder Vistry rose 54p to £ 13.25, its highest level since February 2020, after Barclays predicted that the benefits of partnerships with local authorities and housing associations will exceed those of the wider sector. Barclays said weekly sales were strong for the Kent-based company, which is a leading player in the partnership business, prompting the bank to upgrade Vistry’s price target by 23% .
Owner Franco Manca Fulham shore gained 1.25p to 17p after incomes soared 103pc in the first week after restrictions on indoor dining were lifted, compared to the same week in 2019.
Elsewhere, aircraft parts company Senior said it was a takeover target for US private equity group Lone Star. Senior said that on May 20 he turned down a preliminary offer of 176 pence per share from Lone Star, the fund’s third unsolicited offer, saying he “fundamentally undervalues Senior and his future prospects.”
Senior’s shares jumped 40.7p to 159p after Lone Stone revealed interest, his highest price since February 2020.