Arriva in £73.8m Spanish deal
Jul 4 2008 by Graeme King, The Journal
THE FTSE 100 Index ended a volatile session, rising by 50.3 points to 5476.6.
Media and banking stocks were higher with BSkyB, closing 17.25p higher at 458p and HBOS rising 18.25p higher at 279p, above its rights issue price of 275p.
Arriva announced it had acquired Empresa de Blas y Cia, a Madrid-based bus, company for £78.3m. The takeover was made mostly in cash.
Chief executive David Martin said that he believes that De Blas is the best private operator of buses in the Madrid area where it operates 222 buses on 24 routes.
In addition De Blas has a 30% stake in a major train, bus and transport hub in the city. In 2007, de Blas earned £2.8m in pre- tax profit from revenues of £38.6m.
Shares in Arriva closed 0.66% higher at 685p.
One of the region’s housebuilders, Barratt Developments reported that up to 1,000 jobs were under threat as it struggles with a slowing housing market. The jobs cut is planned as the management will start to merge the offices of Barratt and Wilson Bowden.
The news follows Taylor Wimpey’s, the rival housebuilder plans to shed more than 900 staff.
Barratt Developments has been struggling since the acquisition of Wilson Bowden in April.
Shares in Barratt Developments closed 3.11% higher at 41p.
Grainger, the residential property company where we act as joint broker, announced that it has appointed Baroness Margaret Ford as a non-executive director with immediate effect.
Ken Oiwa Ken.oiwa@brewin.co.uk
