Home news Cineworld tumbles on £2.7bn cinema deal

Cineworld tumbles on £2.7bn cinema deal

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Shares in Cineworld have plunged 17% after confirming it is in advanced talks to buy US cinema chain Regal.Europe’s second-biggest cinema group said it would fund the deal with debt and a rights issue.Cineworld shares were the biggest losers on the FTSE 250, which overall was trading higher.On the FTSE 100, London Stock Exchange Group was one of the biggest losers after its chief executive left.The company said Xavier Rolet had “agreed to step down with immediate effect” at the board’s request.Overall the FTSE 100 was 0.6% lower at 7,417 points.Shares in London were hurt by the rising value of the pound, which for companies that report their results in pounds, reduces the value of sales made overseas.The pound rose above $1.34 for the first time in two months, adding to Tuesday’s gains.Against the dollar it gained 0.5% to trade at $1.3407 and was also 0.5% higher against the euro at €1.1325.”The pound was in party mode following reports that the UK could bow to EU pressure and cough up £50bn for the divorce bill, a move that would potentially unlock trade negotiations before the end of the year,” said Connor Campbell, financial analyst, with SpreadEx.
Source: BBC