The FTSE 100 moved higher on Friday as gains in Vodafone and easyJet helped offset concerns about renewed tensions in the Middle East.
London’s benchmark index rose by around 0.1% in late-morning trading, while the FTSE 250 also recorded a modest gain. The advance was concentrated in a small number of companies rather than spread evenly across the market, with Vodafone and easyJet providing much of the support.
Vodafone led the FTSE 100 after UAE telecommunications group e& agreed to sell its entire 16.21% stake in the company. The holding will be acquired by Vega, an investment vehicle backed by the family of French telecommunications entrepreneur Xavier Niel.
The transaction values the stake at approximately £4.4 billion, based on a purchase price of 110.4792 pence per share. Completion is expected before the end of the year, subject to regulatory approval.
Vega has indicated that it intends to remain a minority shareholder and does not plan to make a full takeover offer. This limits the immediate prospect of a broader bid while providing greater clarity over the ownership of one of Vodafone’s largest shareholdings.
EasyJet was among the strongest performers in the FTSE 250 after confirming that it had agreed in principle to a possible takeover proposal from Apollo Global Management.
Apollo’s proposed cash offer values the airline at around £5.7 billion, or 715 pence per share. The proposal is higher than an earlier approach from Castlelake, which valued easyJet at 690 pence per share.
Mining companies also supported the market. Atalaya Mining, Antofagasta and Rio Tinto moved higher as industrial metals stocks strengthened.
Sterling also strengthened against the dollar and the euro. A stronger pound can reduce the value of overseas earnings when they are converted back into sterling, which can weigh on multinational companies in the FTSE 100.
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