Tonight:
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Pinewood Shepperton's bosses must be wishing the drama was reserved for its film studios.
Today, activist investment fund Crystal Amber said it had raised its stake in the home of the Harry Potter and James Bond films above 27%, just a day before the company posts first-half results.
Crystal Amber, Pinewood's largest shareholder, wants chairman Michael Grade to exit, arguing that its performance since floating six years ago has been unconvincing and that it lacks adequate direction. Once tomorrow's numbers are out, Crystal Amber intends to keep pressing for a shake-up and will meet with Pinewood's bosses. The film studio's shares jumped 4½p to 175¼p.
Shares in London slid as renewed fears for the health of the global economy trumped hopes of further M&A deals. The FTSE 100 shed 62.24 points to 5172.60, retreating to its lowest level in over a month. Trading volumes were light as investors waited for data from America for direction.
The spotlight was on Luminar, and for once the struggling clubs owner was enjoying the attention. Its shares ticked up ¾p to 10¼p with more changing hands in the first three hours of trading than have most days this summer. It is tipped to try to refinance its £90 million debt mountain whatever the outcome of its covenant tests, due on Thursday.
Wild gossip earlier this summer had private equity interested in Luminar, although cooler heads in the City rejected the yarn with scorn.
Yesterday's optimism among investors about mining stocks after the inconclusive Australian general election result proved short lived.
The sector was hard hit by the sell-off, as investors shunned riskier punts, the dollar strengthened and gloom engulfed several companies.
Vedanta Resources was London's worst-performing blue chip — falling 121p to 1916p — after a double whammy of woes. In a move which will please campaigners who protested at the company's annual general meeting, the Indian government has rejected the copper producer's plans to mine bauxite amid environmental concerns.
Vedanta might also face a hurdle in its bid for Cairn India, with India's state-run Oil and Natural Gas Corp emerging as a potential counter-bidder.
Rio Tinto — whispered as a possible counter-bidder for Potash Corp — was off 91p at 3212p, and Potash's suitor BHP Billiton sank 26½p to 1803½p.
Citigroup analyst Jon Bergtheil, concerned by both deals, said: “It is a bit worrying that bids launched last week were done by companies whose M&A did not go ahead as planned in the last cycle. Vedanta made an aggressive bid for the poor-quality Asarco assets… BHP Billiton, of course, failed to get Rio and thereby saved its balance sheet. This may have left the two groups with a false sense of security regarding M&A.”
South American copper producer Antofagasta fell 20½p to 996½p after cutting its annual production target but raising its dividend payout.
Plumbing and building supplies group Wolseley dropped 67p to 1239p after striking a deal to sell its Brandon tool hire arm.
Leed Petroleum was London's top stock as the Gulf of Mexico oil explorer said it might start production at its Main Pass well in the US early in the fourth quarter. Shares jumped 0.5p to 3.1p.
Reader views (1)
The Pinewood Shepperton plc share price is really around £1.10 and only so high because Crystal Amber has bought around 95% of traded shares since last October. No one else is buying. However, if Crystal Amber do make a takeover bid THEN it can be run as a film business and make cracking profits. Under Grade and main shareholder John Whittaker of Peel Holdings (and his other 224 companies) it just took the rent from people who invested in film productions. So it has had on its premises films made which each year generate £5 billion from all sources but Pinewood has had a no risk strategy of around £40 million rent income and around £5 million profits. Not great on a potential £5 billion a year cake. Crystal Amber are at least open to dropping the housing estate expansion on greenbelt land (to which Grade and Property magnet John Whittaker were wedded and their main interest in the business). Crystal Amber are open to any plan which offers longterm shareholder value and film making can. They are open to expanding the brand around the UK including film studios, sets, theme parks if councils offer the right deal for shareholder value. This is all you can ask of a plc. It looks the best news of the choices on offer for British film making jobs if Crystal amber get control. Of course should Pinewood and Shepperton have merged in 2002 and floated in 2004. Should The Uk Film Council have been the watchdog which barked ?
Good job SAVE THE BRITISH FILM INDUSTRY did bark loudly.
- Jonathan Stuart-Brown, http://www.savethebritishfilmindustry.com/, 24/08/2010 22:27
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