Wood fate may be sealed, GDP set to be positive – Daily Business

Wood Group should get some clarity on its fate this week as its suitor faces another deadline to make its takeover intentions clear.

The Aberdeen-based energy services company Wood has been engaged in takeover activity for more than a year and is expected to agree terms with Dubai-based Sidara at a price markedly lower than the Middle East firm offered last summer.

Sidara has until 5pm Thursday to confirm its position.

Last month Wood received a proposal from Sidara comprising a takeover bid worth about £242 million and up to $450 million in cash, which the Wood board said it was minded to recommend.

Economists are anticipating positive first-quarter UK GDP figures on Thursday. Data released on 11 April showed the UK economy expanded by 0.5%in February, following a flat January, but should mean respectable growth for the quarter. Consensus expectations are for an expansion of 0.3%, though Deutsche Bank believes it may come in at 0.6%.

However, it could be as good as it gets for some months as April’s trade war turmoil and the uncertain impact of business tax rises come into play. Even so, energy prices are due to fall, and interest rates coming down.  

DIARY

Tuesday 13 May

• British Retail Consortium UK retail sales monitor
• UK unemployment
• UK wage growth
• US inflation

Wednesday 14 May

• Full-year results from Experian, Burberry and Vertu Motors
• First-half results from Compass and Victorian Plumbing

Thursday 15 May

• Full-year results from 3i, National Grid, United Utilities
• First-half results from Grainger, Premier Foods
• Quarterly results or trading updates from Aviva and Watches of Switzerland
• Deadline for Sidara to make intentions clear towards Wood Group
• UK GDP growth
• UK construction, manufacturing and industrial output
• EU GDP growth

Friday 16 May

• Full-year results from Land Securities