Aberdeen Asset Management takeover rumours surface

The FTSE 100 slipped 27.06 points to 6,417.02, with only a handful of companies rising 1 per cent or more

When times are tough, the takeover rumour mill starts turning.

That’s what happened at Aberdeen Asset Management, which was spurred 10.3p higher to 361.7p on speculation it is hunting for a buyer amid a slowdown for emerging markets, where Aberdeen makes the bulk of its money. Reports suggested Martin Gilbert’s group could pique the interest of Credit Suisse and Deutsche Bank. A company spokesperson rejected the report but failed to prevent the shares from rising.

RBC analyst Peter Lenardos also rebuffed the rumours: “We would be surprised if Aberdeen sold from a position of weakness, which we believe it is currently in,” he said.

The slowdown in emerging markets this year has taken its toll on Aberdeen’s stock – it almost halved in five months – as it struggles to stem the flood of money leaving its funds. It topped the blue-chip leaderboard at the start of a big week for banks and oil companies, with industry heavyweights preparing to report third-quarter results.

The FTSE 100 slipped 27.06 points to 6,417.02, with only a handful of companies rising 1 per cent or more in nervy trading after last week’s strong finish.

Apple shares dropped ahead of its fourth-quarter results today, which hit iPhone chip maker Arm Holdings, down 22p at 1,051p. Strong results from US tech giants Microsoft, Amazon and Alphabet, the new Google parent company, hoisted Arm higher last week.

Investors banked profits in the broadcasters after Friday’s rally, which was inspired by the potential takeover of Cable & Wireless by Liberty Global. ITV dipped 2.9p to 254.1p, while Sky reversed 17p to 1,103p.

An upgrade to outperform from broker RBC Capital helped drive National Express to the top of the FTSE 250, up 10.9p to 286.9p.

AIM-listed Europa Oil & Gas gushed 0.63p or 19 per cent higher to 4p after an independent assessment firm said the value of its assets off the coast of Ireland could be worth up to $7bn (£4.6bn). It now has to find a partner to fund the drilling amid a dry period for oil-project financing.