The FTSE 100 has edged lower despite a surge in the shares of Old Mutual on reports the insurer is planning a multi-million pound break-up. Old Mutual (OML) jumped 7.3% to 192.8p on reports the group had received a takeover approach from private equity firms and was planning a split into four businesses. But that wasn’t enough to lift the faltering FTSE 100, which dipped 34 points, or 0.6%, weighed down by mining stocks.
‘Old Mutual shares are sharply higher this morning on weekend speculation that it could be broken up,’ said Mike van Dulken, head of research at Accendo Markets. ‘While it says that a decision has “yet to be made”, investors will be hoping that it’s a case of 2+2=5, with the individual assets being worth more on a stand-alone basis that whilst held together.’…
[Source: CityWire.co.uk – Author: Daniel Grote – March 7, 2016]
