Wolfson Microelectronics, the designer of audio chips for smartphones, tablet computers and video game consoles, is asking shareholders to back a takeover offer by US rival Cirrus Logic. The company recommends that investors accept the 291m pounds - 235p a share - offer, making for a premium of 75.4 per cent over yesterday's closing price, The Scotsman reports.
Speaking before the Public Accounts Committee, Martin Wheatley, the Chief Executive of the Financial Conduct Authority (FCA), repeated on various occasions that he sees no evidence which would justify an investigation by the regulator into the flotation of Royal Mail. Wheatley explained that around the world most initial public offerings are priced in such a manner that they will rise on the first day. "Typically, they are priced to go," he said. His testimony follows the findings by the National Audit Office (NAO) that the government had lost £750m of taxpayers' money on a single day by hiving off the shares
too cheaply, The Guardian writes.
Another slate of Russian government officials and corporations has been targeted by a new round of sanctions from the US and Europe in an effort to press Russian President Vladimir Putin and his allies to cease their activities in eastern Ukraine. The measures, however, fell quite short of what many in Congress and Kiev have been asking for and were one week late. Hence the rise seen in the Russian stock market, The Wall Street Journal Europe reports.
The largest banks in the UK and building societies could face demands to raise more capital, as a result of the findings of the regulatory stress tests which are set to be published today. The lenders will have to prove that they can withstand house prices dropping by a third as well as a simultaneous spike in interest rates. Later this year the Bank of England's Prudential Regulation Authority will also test the ability of the country's eight largest lenders to survive another crisis, lest taxpayers be called upon again to pick up the tab, The Times writes.
Liberal Democrat Treasury Secretary Danny Alexander on Tuesday branded politicians calling for Britain to exit the European Union "the worst kind of snake-oil salesmen offering a false cure for an imaginary illness", adding that their plans threaten to "kill the recovery". He was speaking after the City UK published research showing that a "Brexit" would hurt the economy. The report from Clifford Chance found that the UK's financial sector, which now employs two million people, would suffer as a consequence under every exit scenario, The Times reports.
Mobile phone operator EE, the joint venture between Orange and Germany's Deutsche Telekom, is on target to reach six million customers by the end of this year thanks to strong demand for 4G data services. In the three months ended on March 31st, it rang up 889,000 new customers, with its total client base rising to 2.9m. It is clear that 4G is expanding more quickly than expected as more handsets are developed which are enabled to use it, according to The Daily Express.