Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad: Tullow Oil dives as CEO quits
Shares in Tullow Oil ( TLW.L ) dived almost 60% on Monday after its chief executive quit, the company cut forecasts, and scrapped its dividend.
Chief executive Paul McDade and exploration director Angus McCoss both quit on Monday “by mutual agreement” following issues at a key oil field in Ghana that forced a production warning last month.
Tullow once again cut production forecasts on Monday as a result of mechanical and operational issues.
The company said it would be taking steps to ensure there is adequate cash flow to support the business but said it was suspending the dividend in light of the issues.
Dorothy Thompson, Tullow’s executive chair, said: “The Board has… been disappointed by the performance of Tullow’s business and now needs time to complete its thorough review of operations.
“Despite today’s announcement, the Board strongly believes that Tullow has good assets and excellent people capable of delivering value for shareholders. We are taking decisive action to restore performance, reduce our cost base and deliver sustainable free cash flow."
Russ Mould, investment director at AJ Bell, said: “The news represents a continuation of the problems which have dogged the company ever since its share price peaked more than seven years ago.
“The company’s skill-set was in exploration – it enjoyed notable discoveries in Ghana and Uganda in the mid-noughties – and it has clearly found the transition to being more of a producer and developer of hydrocarbons more difficult.”
Prosus ( PRX.AS ), the European arm of technology investment firm Naspers, on Monday increased its offer for Just Eat ( JE.L ) to £5.05bn, escalating the heated battle for the food delivery firm.
At 740p per share, the bid is roughly 4.5% more than that of Takeaway.com ( TKWY.AS ), which is hoping to merge with Just Eat and create a global food delivery giant.Prosus, who had been hoping to achieve the backing of 75% of Just Eat shareholders, also said on Monday that it would push ahead with the deal if just 50% of shareholders approved of its bid.