Shares in frozen food retailer Iceland plummeted 15% on the London Stock Exchange today after a morning the group will want to forget.
Not only did chairman Malcolm Walker confirm he would be resigning after his widely criticised share sale, but the group also warned that its full-year profits would come in some way below the market’s expectations. The double-whammy was enough to send its shares into a nosedive, falling 30pto 157p in early trading.
Iceland’s statement came amid a quiet morning’s trading, with the FTSE-100 Index of leading stocks ahead slightly at 6337.0, up 2.5 points. Although trading was subdued, with investors waiting for tonight’s US interest rate announcement, corporate activity was fever pitch.
Lloyds TSB tabled a £19.8bn bid for Abbey National and the Halifax said it was interested in buying parts of Equitable Life. Lloyds’ shares dropped slightly on the news of its bid, off 12p at 723p, while Abbey National was up 8p at £12.26. The Halifax was unchanged at 657p.
Elsewhere water regulator Philip Fletcher conditionally approved Glas Cymru’s plans to take over Welsh Water. The decision helped lift shares in rival water group Kelda Group by 8p to 342p. Kelda is widely tipped to revive its attempts to restructure following Mr Fletcher’s decision.
