Harbour Energy and M&S lead FTSE 250, gambling firm 888 up another 19%

Speculation linking North Sea oil firm Harbour Energy to a US merger today fired up the company’s shares by 4%.

The former blue-chip, which also operates in Indonesia, Vietnam and Norway, is reported to have held talks over a tie-up with Texas-based Talos Energy.

Shares rose 10.4p to 250p, having fallen from October’s 450p after the Energy Profits Levy took its UK tax rate to 75% and all but extinguished 2022 profits. The company is reducing investment in the UK and warned of significant job losses.

Chairman Blair Thomas wrote in Harbour’s recent annual report: “The simple truth is that capital will go where it is welcome and avoid places that have onerous tax regimes or regulatory regimes that stifle the market.”

Should the merger happen, it could mean another stock leaving London after Reuters said the pair are considering a New York listing. Harbour, which is worth £2 billion, was created in 2021 through the combination of Chrysaor with Premier Oil.

Harbour was just ahead of Marks & Spencer in the FTSE 250, with the rejuvenated retailer up 6.45p to its highest since early 2022 at 194p.

The shares, which started 2023 at 125p, benefited from Zara owner Inditex reporting stronger-than-expected trading. The chain’s update also boosted Primark owner Associated British Foods, which surged 3% or 62.5p to 1902.5p.

Gains of 3% for Vodafone and BT shares also supported the top flight, which stood 2.72 points lower at 7625.38 as investors reviewed more global economic weakness after China’s below-par export figures.

The FTSE 250 index fell 34.26 to 19,182.96, despite electronics manufacturer discoverIE lifting 12p to 809p on annual results.

In the FTSE All-Share, 888 Holdings continues to gallop ahead after former Entain directors including ex-CEO Kenny Alexander built a 6.6% stake in the William Hill owner. Shares lifted another 19% or 15.15p to 95.15p, adding to yesterday’s 14% jump.