JJB scores as takeover rumour spreads
YOU can guarantee that during half-term week when many City traders are away skiing or soaking up the sun in Dubai with the kids, that some old takeover stories get an airing.
Sports retailer JJB was quickly out of the blocks on the back of revived private equity rumours and touched 188p before closing 13¼p better at 185p.
Punters responded to a report that Permira is lining up a cash offer and has lined up JD Sports chairman Peter Cowgill to lead the bid.
JJB is a sitting duck. It last month blamed a trainer price war for a downturn in trade over the Christmas period and forecast that annual pretax profits will come in between £32m and £36m, well down on analysts' forecasts of around £48m.
Its comment at the time that the World Cup in Germany this year should boost sales of replica football shirts was taken with a big pinch of salt.
Dealers remember that during a previous World Cup JJB warned that fans were too glued to their TV sets to go out shopping for shirts.
Meanwhile, Mike Ashley's Sports World raised its stake in JD Sports to 16.22pc, having sold down before Christmas.
Speculation that former Next founder and designer George Davies has been drafted in to resuscitate the childrenswear ranges helped Marks & Spencer jump 10¾p before closing 5¼p up at a five-year peak of 519¼p.
The Footsie rallied 29.4 points to 5793.5 but the Dow opened 26 points down as snow storms in New York affected attendance on Wall Street.
However, brokers over there will be keeping their powder dry ahead of new Fed chairman Ben Bernanke's first Humphrey-Hawkins testimony to the House Banking Committee tomorrow. He is expected to hint that US interest rates are set to rise further.
International directories group Yell buzzed 20¼p higher to 570p amid vague rumours of a bid from Google.
Talk of a pending bullish circular turned investors sweet on Tate & Lyle, 25p up at 616½p.
A Merrill Lynch upgrade to buy from neutral put some froth on Scottish & Newcastle, 11¾p dearer at 512p.
Barclays advanced 9½p to 651½p after investment magazine Barron's said that bad debt worries have been overdone.
Strong growth at Barclays Capital and Barclays Global Investors suggest that even without a bid the shares could produce a 15-20% return over the next 12-18 months.
Still waiting for Spain's BBVA to launch a bid, buyers chased Lloyds TSB 3p higher to 552p.
Photo-Me gained 3p to 97¼p after winning back the contract to supply photo booths and kiosks to the Post Office. It has signed a five-year contract to locate 400 photo booths at the Post Office's directly managed branches.
Eurasia Mining added ½p to 5¼p following its acquisition of three exploration licences on the Kola Peninsula in north-west Russia.
Deal Group Media rose 1 &frac78p to 5 &frac18p on news of a bid approach.
International Business Group edged up 1p to 29¾p in sympathy. Following the launch of its betting platform that enables gamblers to compare prices on betting exchanges, Global Gambling Technologies rose 13/8p to 61/8p.
Animal feed and health products manufacturer Lawrence plummeted 31p to 262½p after warning that its full-year profits will be 'significantly below market expectations' mainly due to low sales of higher margin products.
Strong interim results lifted Tristel, a distributor of infection control products, 9p to 59p. Teather & Greenwood says buy.
Plexus dropped 11p to 87½p on its warning that a shortage of exploration and appraisal well rigs in the North Sea has hit demand for its wellhead services.
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