UK

UK investors eager for North American exposure rushed to buy into Melrose Industries on Wednesday, pushing its shares up 46%, after it announced a heavily dilutive £1.655bn rights issue to finance the acquisition of Nortek, a US maker of heating and air conditioning systems.

The Bank of England cut the UK’s countercyclical buffer requirement with immediate effect on Tuesday, softening risks associated with payments on additional tier one (AT1) debt.

UK advertisement operator Exterion Media had begun offering term loans earlier in June, but the deal is now off the table as the UK's vote to leave the EU claims a victim in the leveraged finance markets.

Frontier Resources has announced its intention to buy Concepta Diagnostics, a healthcare company specialising in infertility treatments, through a reverse takeover on London’s Aim market, worth £3m.

It was a rough day for stocks on Wednesday, but a great day for equity capital markets, with two convertible bonds launched and priced — the first since the UK’s vote to quit the European Union was revealed on June 24. They came on top of a roaring reception for Melrose Industries’ announcement of a £1.7bn rights issue for an acquisition in the US.

UK investment firm Melrose will rely on relationship banks for $1.25bn of debt to support its acquisition of Nortek, as the loan market continues to support deals in the wake of the Brexit vote.

Melrose Industries, the UK company that aims to buy, improve and sell underperforming industrial businesses, will conduct a heavily dilutive £1.655bn rights issue, cheering equity capital markets bankers who had feared months of weak activity, especially in the UK, after the shock of the Brexit referendum.

While Bank of England governor Mark Carney took an admirable step to encourage UK bank lending on Tuesday, the syndicated loan market does not need more bank liquidity, it needs gutsy treasurers.

Gold and other precious metals have been major beneficiaries as safe haven investments in the wake of the UK’s Brexit vote, with gold futures this week hitting their highest level since July 2014. But some believe the wider precious metals sector has overshot.

The Bank of England cut the UK’s countercyclical buffer requirement with immediate effect on Tuesday, softening risks associated with payments on additional tier one (AT1) debt.

Merger talks between the London Stock Exchange Group and Deutsche Börse remain on course despite the United Kingdom’s recent vote to leave the European Union, with LSEG shareholders on Monday almost unanimously approving the plans. But comments from the German exchange this week suggest there are tough talks ahead on where to locate the merged group's holding company.

Ashurst has picked up a new partner for its finance division, following the recent appointment of a former loans banker from Royal Bank of Scotland.