London's FTSE 100 hits new peak as Schroders soars on buyout

Feb 12 (Reuters) - The UK's FTSE 100 touched a fresh peak on Thursday, with money manager Schroders surging more than 30% after a takeover by U.S. firm Nuveen, while data showed Britain's economy barely grew in the final quarter of 2025.

Schroders' shares SDR.L jumped as much as 31% to their highest in more than four years after U.S. asset manager Nuveen agreed to buy the company for 9.9 billion pounds ($13.5 billion) in one of Europe's largest fund management deals.

It was the top gainer on the blue-chip FTSE 100 .FTSE, which rose to an intraday record before easing slightly. The index was up 0.1% as of 1137 GMT. The FTSE 250 mid-cap index .FTMC rose 0.2%.

In contrast to the broader gains, Unilever ULVR.L dipped 1.1% after warning that 2026 sales growth would likely hit the bottom of its forecast range after a slowdown in the U.S. and Europe.

British American Tobacco BATS.L dropped 2.3% after announcing job cuts and full-year results.

Broader macro signals were also in focus as the GDP release showed the economy grew just 0.1% in the fourth quarter, matching the previous quarter's pace and partly reflecting uncertainty in the run-up to finance minister Rachel Reeves' November budget.

Thursday's figures, which showed a sharp downward revision to monthly GDP and a near‑3% drop in business investment driven by volatile transport outlays, underscored why investors see the Bank of England as more likely than not to cut rates again in March.

Among other movers, Morgan Sindall MGNS.L climbed 4.6% to top the mid-cap index after the construction firm forecast 2026 results ahead of estimates as its orderbook rose 17% entering the year.

Shares of pest‑control firm Rentokil Initial RTO.L fell 4.2% as U.S. peer Rollins ROL.N missed Wall Street estimates for fourth‑quarter revenue and earnings.