Wed City brief: Cairn plunges on India tax demand
Cairn Energy shares plummeted by more than 16% at one point after being served with a £1bn bill by the Indian government claiming unpaid tax in relation to the IPO of Cairn India.
The company is fiercely contesting the claim but investors took flight. Cairn announced reduced losses yesterday.
UK stocks turned upwards after yesterday’s heavy sell-off as a raft of weak economic data from China added to concerns about a slowdown in the world’s second-largest economy. The FTSE100 was up 0.4% in early trade, but well off its recent peak. It closed up 0.28% at 6,721.51.
Shares in Domino Printing leapt 31% in early trade after agreeing a deal wirth Brother Industries worth nearly £1bn.
Temporary power and temperature control group Aggreko was boosted on a day when the dollar reached a 12-year high against the euro. Aggreko has a substantial US business, with the Americas accounting for nearly a half of group trading profit in 2014. Shares rose 3.6% to 1,572p.
Tullow Oil gained after hailing “excellent results” from its appraisal activity in the South Lokichar Basin in Kenya as it looks to prove reservoir quality and define resources estimates ahead of potential development, though one well had to be plugged and abandoned.