The Morning News Update with Barclays, Dixons Retail and EMED Mining

FTSE 100

London Stock Exchange (LSE) – announces the proposed acquisition of Frank Russell Company for total cash consideration of $2.7 billion. Approximately $1.6 billion (£942 million) of the consideration will be financed from the net proceeds of a Rights Issue, with the remaining $1.1 billion (£648million) financed from existing and new bank debt.

AstraZeneca (AZN) – the US Food and Drug Administration (FDA) Oncologic Drugs Advisory Committee has voted 11 to 2 that current evidence from clinical studies does not support an accelerated approval for use of olaparib as a maintenance treatment for women with platinum-sensitive relapsed ovarian cancer who have the germline BRCA (gBRCA) mutation, and who are in complete or partial response to platinum-based chemotherapy.

Barclays (BARC) – the New York State Attorney General has filed a complaint relating to the Attorney General’s investigation of LX Liquidity Cross, Barclays’ SEC-registered Alternative Trading System and which provides alternative liquidity to market participants. The complaint makes a number of allegations, including fraud and deceptive practices. Amongst other relief, the complaint seeks unspecified monetary damages and injunctive relief.

FTSE 250

Galliford Try (GFRD) – has been appointed to four new contracts worth £82 million in total.

Ophir Energy (OPHR) – drilling operations have now concluded on the Okala-1 well in the Mbeli Block offshore Gabon. The well encountered a thick section of Aptian salt as prognosed and well developed sandstones in the Gamba and Dentale formations. However, there were no significant hydrocarbon shows in the target reservoirs. 

Dixons Retail (DXNS) –  profit before tax after non-underlying items increased by 53% to £132.9 million in the year to April.

Small caps

Progility (PGY) – despite the impact of the weakening Australian dollar, the Board expects the results for the 12 months to 30 June 2014 to be in line with market expectations.

SQS Quality Software Systems (SQS) – announces a number of new contract wins and contract extensions together worth approximately €60 million during the next three years.  

Firestone Diamonds (FDI) – Following completion of the project financing in May 2014, Firestone has commenced its development programme to build and commission the Main Treatment Plant and supporting infrastructure at Liqhobong, to ensure it is delivered in H1 2016.

EMED Mining (EMED) – the Government of Andalucía has announced the awarding of an €8.8 million grant to EMED Mining’s Spanish subsidiary, EMED Tartessus, in order to support the modernisation of the Rio Tinto Copper Project facilities.

Cohort (CHRT) – subsidiary SEA has been awarded a £4 million contract by the UK Ministry of Defence to support a four-year research programme for the Defence Science and Technology Laboratory.