MARKET REPORT: Rentokil shares rise as former BT boss mulls bid

Shares in rat-catcher Royal topped the FTSE 100 rankings as it emerged as a takeover target.

Rentokil Initial, which won pest control contracts at Buckingham Palace in the 1960s, has been in the spotlight following reports at the weekend that former BT boss Philip Jansen is preparing a £15bn operation.

According to the Sunday Times, he is raising private equity funding for a deal that will make him chief executive.

Private equity firms said to be interested include CVC and Bain Capital.

Rentokil declined to comment, but shares rose 7.8%, or 34.8p, ​​to 482.9p.

Shares have fallen by a quarter in the past year, leaving them vulnerable to predators.

Joe Biden’s decision to withdraw from the race for the White House was the talk of trading rooms around the world. As investors grappled with what this would mean, the FTSE 100 rose 0.53%, or 43.06 points, to 8,198.78 and the FTSE 250 added 0.34%, or 71 points, to 21,138.68.

A JPMORGAN rating upgrade sent Travis Perkins shares to their highest level in more than a year. Shares in the construction supplier rose 1.8%, or 17p, to 936p.

Vodafone sold a further 10% stake in Oak Holdings – the company that controls the Vantage Towers mobile masts business – for £1.1bn. The telecoms giant will use the proceeds to reduce its debt. Vodafone shares fell 0.1%, or 0.08p, to 70.42p.

Mony Group, behind comparison website Moneysupermarket, reported record first-half revenue and profit.

Sales rose 5% to £223.5m in the six months to the end of June, while profits rose 8% to £73m. The company attributed the strong performance to a surge in car and home insurance switching. The shares fell 0.3%, or 0.6p, to 227p.

Ceres Power raised its annual forecast after securing its second licensing partner this year.

The solid oxide fuel cell technology company expects its revenue to more than double to £27m-£29m in the first half of the year.

As a result, it raised its annual sales forecast to between £50m and £60m, compared with a previous estimate of around £44m. The forecast came after Ceres signed a long-term licensing agreement with an unnamed manufacturer based in the Asia Pacific region to develop equipment to produce hydrogen.

It is the company’s second partner this year, having signed a long-term deal following its agreement with Taiwanese manufacturer Delta Electronics in January. Shares rose 7.5%, or 13.9p, to 200p.

More than 600,000 UK businesses are facing financial difficulties amid a tough economic climate, according to Begbies Traynor.

The insolvency firm said travel and tourism, hotels and accommodation, healthcare and education, and bars and restaurants were the hardest hit sectors in the second quarter of this year.