Gilts

The DMO has appointed Barclays Capital, HSBC, JPMorgan and RBS as bookrunners on its forthcoming index-linked gilt due 2042, which it said would be sold next week subject to market conditions. The offering will be the second gilt to be sold via a banking syndicate this year after a £7 billion sale of 25-year gilts in June.

Rumour of the day

On a day when the summer rumour mill fully kicked into action, Dana Petroleum gained 32p to £13.32 amid suggestions in the City that BP, up 2p to 473½p, could be eyeing up the oil and gas group. The company, which has operations in the North Sea and Egypt, is previously said to have caught the attention of RWE, the German utility.

Deal of the day

Island Gas Resources fell 3½p to 67½p after the coal-bed methane developer raised about £3.5 million in a share placing at 60p per share. The money will be used to fund the group’s working capital requirements. Island Gas Resources said plans for a second production site at Swallowcroft in Staffordshire were progressing.

Bet of the day

British Airways was under fire at its annual meeting yesterday, leading Paddy Power to revise its betting on who will succeed Willie Walsh as the airline’s chief executive. Robert Boyle, the flag carrier’s director of strategy, is the 2-1 favourite, with Keith Williams, the airline’s chief financial officer, drifting out to 9-4 in light of the group’s losses.

Tiddler to watch

Plexus, the AIM-listed oil and gas services business, was unchanged at 36p despite signing a £1.5 million contract with Talisman Energy. The group will supply its wellhead system to Talisman’s exploration platforms in the Norwegian North Sea. This is the fourth such contract signed this year and more are thought to be on the way.

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