TT Electronics shares were sharply higher in early Friday trade on news that Lonon-listed competitor Volex had made several takeover approaches.

Volex, a specialist in data connectivity solutions, has made two separate takeover proposals to TT Electronics. According to a statement released by Volex on Friday, TT Electronics’ board rejected both offers and declined to engage in discussions.

Nevertheless, the takeover talk sent TT Electronics shares soaring higher by 38% to 109p.

The initial proposal, valued at 129p per share, consisted of 62.9 pence in cash and 0.203 new Volex shares for each TT Electronics share. This was followed by a second, enhanced proposal offering, valued at 135.5 pence per share at the time of the offer.

Based on Volex’s share price at the close of business on 14 November 2024, the latest proposal now values each TT Electronics share at 139.6 pence, translating to a TT Electronics valuation of £248.6 million.

This represents a premium of 76.7 per cent above TT Electronics’ closing price of 79.0 pence on 14 November 2024, and a 73.2 per cent premium over the one-month volume-weighted average share price.

“We believe that bringing Volex and TT Electronics together in a highly synergistic transaction would create a scaled and diversified leader in the specialist electronics market which would act as a platform for future organic and inorganic growth and significant value creation,” said Lord Rothschild, Executive Chairman of Volex.

“TT Electronics would provide the Group with further exposure to structural growth markets, such as medical and industrial technology, and add a new end-market, aerospace and defence, to progress Volex’s successful strategy of diversification. At the same time, TT Electronics would benefit from being part of a larger group with stronger performance and the associated opportunities for revenue and cost synergies to deliver higher profitability.”

Should the second proposal proceed to a formal offer, Volex intends to implement a mix-and-match facility, providing TT Electronics shareholders with additional flexibility in how they receive their consideration.

The FTSE 100 carved out gains on Thursday as sentiment improved, but investors should be wary gains for Uk stocks in recent sessions have quickly been sold into as choppiness after the US election persists.

US CPI released yesterday has weakened the pound against the dollar and supported the FTSE 100’s overseas earners, leading to a 0.5% rise for London’s leading index.

“The FTSE 100 ticked higher in early trading on Thursday despite weakness in the US and Asia overnight as American inflation edged higher,” says AJ Bell investment director Russ Mould.

“While the consumer prices reading wasn’t alarmingly high, it helped to stoke strong performance for the dollar again.”

Attention is starting to shift back to interest rates after the fanfare of the US election, and sticky US inflation has increased the chances of another US interest rate hike next month.

“With post-election clarity and seasonal optimism fuelling markets, investors are looking to Fed Chair Powell to don his best Santa outfit and deliver a rate cut next month, with markets giving odds of a cut at around 83%,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“CPI data came in as expected, easing inflation concerns that had nudged yields higher, though core inflation remains somewhat persistent. While semiconductors faced pressure, nearing a 10-month low relative to the S&P, stronger odds for a December lifted the broader index as markets wait eagerly for a gift from the Fed to cap off the year.”

The FTSE 100’s gains were fairly broad, with around 70% of the constituents trading in positive territory at the time of writing.

After releasing a reassuring trading update, Spirax Group was the FTSE 100’s top riser on Thursday with a 5% gain. Investors were desperate for some reassurance after the share price had more than halved from the 2021 highs, and this came in the form of robust organic sales growth for the first ten months of the year, which were higher than the comparable period last year. That said, the company will need to deliver further improvement in the coming quarters to bring down the fairly rich earnings multiple.

ConvaTec was the top faller as investors booked profits after the healthcare group surged earlier this week.

Aviva was another standout performer, gaining 4.8% on strong third-quarter results. The group enjoyed growth across all business units, particularly in the retirement and wealth.

“Insurance giant Aviva sounded pretty confident alongside third-quarter numbers, and the details contained within them mean it has every right to be,” Russ Mould said.

“The company is seeing strong performance across all of its business lines. Insurance is doing well thanks to disciplined pricing over the last 12 months while the company continues to see growth in its wealth management arm. 

“Encouragingly, Aviva’s growing customer base now often has more than one policy per household. Increasing the proportion which do is an obvious growth opportunity for the business.”

Arc Minerals shares sank on Thursday after the group announced the completion of its initial drilling programme at the Virgo Project, located in Botswana’s Kalahari Copper Belt.

The exploration company has successfully concluded a 3,000-metre drilling campaign across eight holes at its PL135/2017 license area, yet the market seems unhappy with the results as shares fell over 10% in early trade on Thursday.

The most significant results came from diamond drill hole ALV-DD-004, which yielded copper-silver mineralisation of 1.29% copper equivalent over 3 metres, within a broader intersection of 0.82% copper equivalent over 6 metres.

Six additional holes encountered elevated to anomalous copper mineralisation, demonstrating geological characteristics similar to MMG’s operational Zone 5 underground mine in the region. This will provide some solace for investors.

The drilling programme was initially designed to explore extensions of previously identified mineralisation in the adjacent MMG license, where historical drilling had returned impressive results of 4.3 metres at 1.65% copper equivalent and 6.1 metres at 2.56% copper equivalent.

Analysis of the drill core suggests that this first phase intersected the lateral fringe of the copper zone, specifically within an iron-rich area that is interpreted as the outer halo of the main mineralised zone. Arc Minerals is currently evaluating the data and developing plans for a second phase of drilling, which will target the interpreted inner copper sulphide zone, moving away from the iron-rich area.

“I am very pleased to report that assay results from the first phase of drilling at our Botswana project identified good copper mineralisation and similar geological settings to neighbouring MMG’s Zone 5,” said Nick von Schirnding, Executive Chairman of Arc Minerals.

“These results confirm our view that we have economic grades of copper mineralisation especially in the context of increasing interest by majors in our license. We will continue our drill programme to target the inner copper zone, presenting what we believe to be a further 5km strike along which to drill.“

Innovative Eyewear, the developer of ChatGPT-enabled smart eyewear, has reported substantial financial growth for the first nine months of 2024, with net revenue reaching $945,752, representing a 76% increase compared to the same period in 2023.

Revenue growth has been attributed to successful product launches throughout the year, including the company’s Lyte XL collection and new co-branded partnerships with Nautica® and Eddie Bauer®. Enhanced marketing initiatives and growing consumer interest in smart eyewear technology have further contributed to this impressive performance.

For the third quarter of 2024, the company recorded net revenue of $253,599, marking a 14% increase from the previous year. This growth was achieved through strategic pricing adjustments and improved wholesale distribution management, resulting in higher average order values.

“We have continued the trend of outperforming sales each quarter on a year-over-year basis, which we have done every quarter for the last 15 months,” said Harrison Gross, CEO of Innovative Eyewear.

“I am pleased by our continued growth and excited by the potential of further expansion with the upcoming launches of new product lines.”

In a notable development for cost optimisation, the company has reported a 50% reduction in lens fulfilment costs during the third quarter, following a partnership with a new Miami-based supplier.

This cost reduction is expected to improve gross margins in the coming months significantly.

Looking ahead, Innovative Eyewear has announced several strategic initiatives to maintain growth momentum. The company has successfully launched its flagship Lucyd Lyte collection on Target.com and secured an exclusive distribution agreement for the Middle East market through Ecom Gulf FZCO. Additionally, the company has unveiled its new ANSI-certified smart safety glasses, Lucyd Armor, demonstrating its commitment to product innovation.

Although the earnings update reported strong revenue growth through 2024, the focus was firmly on the future, including plans to launch the Reebok® Powered by Lucyd line in early 2025, improved distribution channels, and boost margins through cost savings.

Management anticipates that the expansion into major national retail channels will drive significant revenue growth over the next eighteen months, while new product designs are expected to deliver up to 30% lower unit costs compared to current models.

“Our recent onboardings into Target.com, Kits.com and Nebraska Furniture Mart indicate that major retailers are warming up to the category of smart eyewear, particularly when delivered in the optical-first form factor that our products are known for,” Gross said.

“There has been significant retail interest particularly around our new Lucyd Armor line, and the upcoming Reebok Powered by Lucyd collection. Based on recent discussions, I anticipate additional placements with leading American retailers in 2025.”