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A Brief Look At The Week Ahead | |
On the heels of Gordon Brown's swansong Budget, the City will be keen to see how his tax wizardry squares with the macro-economic climate. The Bank of England's Treasury Committee will meet on Tuesday for a hearing on the February 2007 inflation report, and economists will keep a keen ear for any glimpse into the BoE's thoughts on where inflation might be headed. Cairn Energy will be pressed for an update its ventures in India when it reports results on Tuesday. Despite pledging to return 481m of the proceeds to shareholders after the float, Cairn's shares are trading 20% below its net asset value. They will likely remain that way until the company can give some concrete guidance on its exploration and pipeline issues. The group was recently booted out of the FTSE100. Alliance Boots will give a trading update to the City on Wednesday. However, the real interest will lie on the progress, if any, of the possible takeover of the chemist by deputy chairman Stefano Pessina, who has the backing of private equity giant Kohlberg Kravis Roberts. Alliance's board has already rejected the 10-per-share offer, and the speculation is that Pessina and Co could go higher to close the deal. Sources said that an offer could come as early as this week to give them time to hammer out further details and perhaps get access to the target's books ahead of the Takeover Panel's April 13th deadline. Once considered a possible target for private equity, Woolworths will reveal its annual results on Thursday. Analysts will be hoping for signs of life from its retail business, which has continued to struggle. The company's wholesale and entertainment businesses, on the other hand, have made some strides. On the same day, Tate & Lyle will likely add another sour dose of news this week when it gives its trading update. Struggling to deal with the effects of European Union cuts to sugar subsidies that have significantly eroded its traditional business, the company has shifted its focus to its Splenda sweetener. Yet at its annual results in January, the company fell short of forecasts. Its stock price was one of the FTSE100's worst performers until speculation of a private equity takeover gave it a boost earlier this month. Amongst others in the spotlight this week will be Nautical Petroleum and Sinclair Pharma on Monday; Entertainment Rights on Tuesday; CeNeS Pharmaceuticals on Wednesday; Kingfisher and Cyprotex on Thursday and Finsbury Food on Friday. Plenty to get your teeth into. Good hunting! Greystone Thanks, as always to Digger, Kyoto and Supermum for their invaluable input to the Traders Thread (Greystone is Alan English, City Editor at MoneyAM.) |