Shares round-up: takeovers, big winners and a slump at 3i

There was a mixed reaction to company results Thursday, generating some sizeable gains and losses in the FTSE All-Share index. But there’s been plenty of action as corporate dealmakers look to snap up cheap UK assets.

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The biggest winner today is Tate & Lyle, whose shares rocketed 53% after the sugar and sweeteners confirmed it has received a conditional proposal from US rival Ingredion Inc regarding a possible cash offer. Tate shareholders are being offered 615p a share made up of 595p in cash plus the right to annual and half-year dividends worth 13p and 7p respectively.

Tate shares traded as high as 580p Thursday, about where they were a year ago and significantly lower than the 800p they were changing hands for in October 2024.

Source: interactive investor. Past performance is not a guide to future performance.

There was potential dealmaking atSpire Healthcare Group too, where its second-largest shareholder launched a takeover bid. Toscafund Asset Management, the equity-focused hedge fund, is talking to the FTSE 250 private hospital company about a possible cash offer worth 250p per share.

Spire shares have been volatile since it kicked off a strategic review in September last year. Since then, there was a slump in December following a warning that NHS volumes would be a “material uncertainty” across the sector, especially in Q1.

In March, we heard that talks with both Bridgepoint and Triton about a potential sale of the company had come to nothing. However, others were still interested in buying the business. Spire shares still slumped to a five-year low.

Now, bosses say they would be prepared to unanimously recommend the possible cash offer. Spire shares traded as high as 223p Thursday, up 46% on the day but still some way short of 250p.

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Watches of Switzerland Group shares ticked up 14% to their highest in over two years as investors clocked record annual revenue. In a trading update, the FTSE company reported top-line growth of 13% to £1.8 billion at constant currency in the 53 weeks to 3 May. Adjusted operating profit is tipped to be £152-155 million when results are published on 14 July, ahead of previous guidance.

Management attributed much of the improvement to the US, its “primary engine of growth”, where revenue surged 24% to $1.24 billion (£918 million).

Auction Technology Group had a strong session, rallying more than 10% to its best since a crash last August. Then, the online auctions marketplace firm said it was spending $85 million on Chairish, which brings together buyers and sellers of vintage furniture, décor and art. Investors worried about the extra debt needed to fund the purchase, sending shares down over 20%.

But today’s half-year results were well-received. Although still loss-making, a strong second quarter aided a 41.7% increase in revenue for the six months ended 31 March to $126.1 million. There’s been a modest upgrade to full-year guidance, while a decrease in adjusted net debt is also welcome.

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Analysts at Cavendish were happy with the numbers, believing further cost savings should support margin expansion in 2027. They’re sticking with their buy rating and 599p price target.

FTSE All-Share’s biggest risers

Source: ShareScope. Past performance is not a guide to future performance.

It’s not all good news though, and 3i Group Ord shareholders will be unhappy with another disappointing update on its European budget retailer Action.  At their worst, 3i shares traded down 24% at 1,825p, their lowest in three years and down almost 60% from October’s record high.

The FTSE 100 private equity firm said that like-for-like (LFL) sales growth slowed to 2.4% in the 19 weeks to 10 May versus 6.8% this time last year. 3i blamed cooler weather for underperformance in seasonal categories. It also said consumers had remained cautious in France and Germany since the Iran war, meaning LFL sales in these core markets are flat year to date.

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A 65% stake in the business is equivalent to about three-quarters of 3i’s portfolio, which explains why problems at Action have such an outsized impact its share price.