LONDON -- The FTSE 100 (FTSEINDICES:^FTSE) is back above the 6,400 level, up 1.23% to 6,414 as of 9:35 a.m. EDT. The index of top U.K. shares has now fallen 6.3% from the 13-year peak of 6,876 points set on May 22.
But not every stock is joining in on the market's rally. Here are three that look set to slip behind the FTSE 100 today.
Water company Severn Trent today rejected a third takeover bid from LongRiver Partners, causing the share price to drop 4.5% to 1,977 pence. The offer, of £22 per share, did not account for the payment of a 45.51 pence-per-share final dividend and effectively valued the shares at £21.54. What's more, the latest proposal was only 3.5% better than the previous offer, which had been quickly rejected.
Once again, the Severn Trent board "unanimously concluded that the Proposal continues to fail to reflect the significant long term value of Severn Trent or to recognise its future potential." LongRiver Partners said it may now walk away.
Telecom software specialist Globo released a trading update this morning and saw its shares drop 3.9% to 44.5 pence -- but that's really not bad at all, seeing as the price is still up more than 150% over the past 12 months.
Trading so far this year is said to be strong, with Globo's international mobile business now accounting for more than 85% of revenue. For the year to December 2013, current forecasts put Globo's shares on a P/E of only about 10.5, even after that huge share-price appreciation.
The FTSE's big miners are all slipping today, with Anglo American continuing to be one of the sector's heaviest casualties. Exposed to the iron ore market, Anglo has seen its share price drop more than 30% over the past year after falling a further 2.6% this morning on disappointing news from China, where it seems growth for the second quarter will be slower than previously expected.
Are our miners bargains now? Well, Anglo American is on a forward P/E for this year of less than 11, falling to 9.5 based on expectations of a bit of a profit rebound for 2014.
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