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Wednesday's agenda: Kentz in focus after SNC-Lavalin offer

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Midweek sees a trading statement from oil services group Kentz (LON:KENZ), which Tuesday hit the headlines as it unveiled a £1.16bn deal with contractor SNC-Lavalin.

Kentz, the FTSE250 member, is to be bought by the Canada firm SNC-Lavalin in a 935p cash offer, to be carried out by a scheme of arrangement. 

The takeover has already been unanimously approved by the Kentz board.

The price is a 33% premium to Kentz's closing price on Friday.

City broker Canaccord has lifted its target price on Kentz following the bid to 935p from 850p and said it would be surprised to see a competing bid, though there has been some speculation in the City that rival bidders may come forward.

But it downgraded the rating  to 'hold' from 'buy'.

Analyst Alex Brooks said: "This is the second offer to be made for Kentz in the past twelve months; the previous one, by Amec (indicated at 565-580p), did not receive the support of sufficient shareholders and never made it as far as a formal proposal."

Kentz made a US$109.7mln pre-tax profit last year and its clients include majors such as Shell, BP, Chevron and ExxonMobil.

It employs 14,500 people in 36 countries.

Significant announcements expected:

Companies: Finals: Northgate (LON:NTG), Stagecoach Group (LON:SGC). Trading Statement: Kentz Corporation (LON:KENZ).

The following widely-held stocks are trading ex-dividend on Wednesday: Tate & Lyle, MITIE Group, Experian, Kingfisher

Economic: UK: Nationwide HPI, BOE Financial Stability Report. EU: Italian Prelim CPI. US: Core Durable Goods Orders, Durable Goods Orders, Final GDP, Final GDP Price Index.

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