FTSE 250 movers: RPC boosted by bid talk while Just Group continues to sink
London's FTSE 250 was steady at 20,223.79 in afternoon trade on Monday.
Packaging manufacturer RPC Group was the afternoon's big riser, surging after it confirmed that it was in "preliminary discussions" with two private equity groups over a potential offer for the plastics manufacturer. The FTSE 250 group, which has come under pressure from investors over its growth plans, said talks were taking place with both Apollo Global Management and Bain Capital.
Peel Hunt reiterated its 'buy' rating of the firm's shares, recommending a target price of 1,230p.
Aberdeen-based transport firm FirstGroup was on the rise for a similar reason after Bloomberg reported last week that the company has attracted interest from private equity groups.
The company also received a boost from Liberum restating it's 'buy' rating on the shares with a target price of 110p.
"It remains to be seen whether this translates into anything formal, either for parts of the business or for the group as a whole. We see an opportunity to bridge the gap between FirstGroup’s market-leading positions and its sub-par financial performance. Obstacles remain, notably the pension deficit and UK rail franchises, but none are insurmountable," said Liberum analysts.
Indivior was also on the front foot on Monday after it confirmed that it has prepaid $150m of outstanding debt, leaving the drug developer with outstanding borrowing under its term loan facilities of $333m.
Spire Healthcare also crept upwards in afternoon trading, as Peel Hunt announced that its rating for the company's shares was 'under review' ahead of the release of its interim results on 18 September.
"Spire healthcare has been one of the summer’s biggest movers, falling 22% on the day of the profit warning on 6 August. With the shares at an all-time low since the IPO, we believe the risk/reward profile is likely skewed to the upside into its interim results," said the broker.
Just Group's shares extended their slide in the wake of the company's interim results published on 7 September into a fifth day. The pensions provider reported a rise in adjusted operating profits for the first half, but deferred its interim dividend as the outcome of the lifetime mortgage review remains unknown.
The sustained share price reaction seems unfair, with Barclays and Numis having both responded positively o the "exceptionally strong" results posted last week.
Swiss-based commodity trading and mining company Ferrexpo saw its shares dip despite JPMorgan reiterating its 'overweight' rating for the firm's shares after an assessment of European metals and mining.
Fertiliser development firm Sirius Minerals continued to drop after a tumultuous week saw the company say the amount it needs in order to build its mine in the North York Moors has rocketed by between $400m and $600m to around $4.2bn.
consequently, Liberum cut its target price for the company's shares from 60p to 50p but kept its 'buy' rating.
Market Movers
FTSE 250 (MCX) 20,223.79 0.07%
FTSE 250 - Risers
RPC Group (RPC) 802.00p 17.32%
Alfa Financial Software Holdings (ALFA) 162.40p 5.87%
FirstGroup (FGP) 98.80p 4.22%
Ultra Electronics Holdings (ULE) 1,628.00p 2.71%
Indivior (INDV) 266.30p 2.54%
Games Workshop Group (GAW) 3,560.00p 2.45%
IntegraFin Holding (IHP) 362.00p 2.26%
QinetiQ Group (QQ.) 282.50p 2.17%
Spire Healthcare Group (SPI) 173.36p 2.16%
TalkTalk Telecom Group (TALK) 130.20p 2.12%
FTSE 250 - Fallers
Just Group (JUST) 74.70p -11.60%
JPMorgan Indian Investment Trust (JII) 676.00p -3.43%
Sirius Minerals (SXX) 25.50p -3.12%
Ferrexpo (FXPO) 143.30p -2.98%
Provident Financial (PFG) 646.80p -2.85%
Centamin (DI) (CEY) 87.84p -2.81%
Rank Group (RNK) 169.80p -2.75%
Ascential (ASCL) 423.60p -2.53%
Serco Group (SRP) 96.40p -2.43%
Hochschild Mining (HOC) 158.00p -2.38%