Sharewatch: Acquisition Rumours Dominate Media Stocks
Possible mergers and acquisitions activity dominated market sentiment yesterday. Emap was seen in the spotlight, down 1.61%, on rumours that it is to acquire television and radio group SMG, which rose 4.16% on the speculation.
It is understood Emap is keen to expand its digital presence and is particularly interested in SMG’s Virgin brand.
Elsewhere, GWR group was seen under pressure falling 5.09% on concerns that the Daily Mail & General Trust will drop its holding in the group in order to release equity to purchase the Telegraph titles.
Broader market sentiment was mixed yesterday despite the Dow Jones Industrial Average briefly breaching the 10,000 level for the first time since May 2002. Analysts were uneasy as the US Federal Reserve hinted at a moderate shift in policy which may see interest rates increase in the future, despite confirming that interest rates will remain at 1% for the moment.
The closing prices of media company shares on Tuesday were:
