Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Australia’s REA eyes bid for Rightmove
REA Group has this morning confirmed media speculation that it is looking at making a bid for the online property portal Rightmove LON:RMV. Noting significant similarities between the two businesses, REA sees this as a transformational opportunity to create a global property company that is dominant in both the UK and Australia. REA Group is listed on the ASX with a market cap of around £14bn. Its shares slipped almost 6% on Monday.
#2. Oncimmune reports another contract win with existing customer
AIM-listed antibody profiling company Oncimmune LON:ONC has this morning announced a major contract win with a top 10 global pharma company. There’s already a commercial relationship in place, but the deal – worth $0.7m – comes just weeks after a similar $1.5m arrangement was struck with another client.
#3. Trading update points to outperformance in tough market
Vertu Motors LON:VTU published a trading update this morning, noting a strong performance in used cars and aftersales, against a softer market for new retail sales. Full year profits are expected to be broadly in line with expectations, with performance weighted into the second half. Notably on those new vehicle sales the 5.8% contraction seen over the first five months of. the year was significantly better than the industry-wide 12.1% decline.
