London pre-open: Blue chips to drop

15th Jun 2009 07:37

London's blue chips are expected to fall back in early dealings Monday with traders expecting a 20 point drop.Punch Taverns said it will raise approximately £350m through a placing and open offer and intends to make a tender offer to purchase any or all of its outstanding convertible bonds. The group also said today that trading results to date reflect the challenging market conditions being faced by the sector.Platinum miner Lonmin said its Number One furnace has been shut down following a matte run-out yesterday. The group's initial estimate is that a full repair of the vessel is likely to take around 30 days. Support services group Serco has renewed and expanded its contract for air traffic services at Dubai International Airport. The new contract is valued at £245m over a longer period of ten years. Wine warehouse chain Majestic Wine reported a 55.8% drop in full-year profits but said it has made a more encouraging start to the new financial year. TV programme maker Ten Alps achieved growth in profits and margins in line with market expectations for the year despite the tough conditions. Housebuilder and contractor Galliford Try has been awarded a £54m contract called Campus 21 by West Kent College to redevelop the college's Tonbridge campus. The redevelopment will include the construction of a new performance arts building, a main reception area, a community hub and learning areas.