Consumers may be turning against its products, but traders reckon Britvic itself looks attractive and the maker of fizzy drinks is likely to receive a takeover approach. As usual with market rumours over the past few months, the name in the frame was a private equity bidder.
Britvic's profit warning, the company's third since it came to market little short of six months ago, pushed shares in the company down in early dealings but by the end of the day the stock was up 17.75p at 222p.
Across the wider market the FTSE 100 closed up 90.6 points at 5677.7. After a shaky start due to a poor performance from Asian markets overnight and a rather inconclusive end to Wednesday's trading on Wall Street, the market picked up in the afternoon as the Dow Jones opened strongly and buyers returned for mining stocks after good results for copper producer Antofagasta, up 73p at £20.68.
There was evidence that some short-sellers, who had been predicting a continuation of Wednesday's rout, rushed back into the market when the index turned sharply against them towards the end of the morning. But traders are still unsure whether the recent bear market is over and shares will stabilise around current levels. The only thing that is sure is that there will be further volatility in this market.
Tate & Lyle was the day's biggest gainer, up 30p at 564p as its annual profits came in ahead of the City's expectations, up 16% at £295m. Associated British Foods, owner of competitor sugar brand British Sugar, added 19.5p to 746.5p as Merrill Lynch upgraded its stance on the stock to buy from neutral.
The broker likes the company's recent £317m acquisition of a 51% stake in Illovo, one of Africa's largest sugar producers. Describing it as a "very astute move" Merrill Lynch said the deal adds exposure to the African market and gives AB Foods access to almost 2m tonnes of low-cost sugar production.
Cable & Wireless slid 2.5p to 97.5p after another set of disappointing results. Traders were particularly annoyed with the company's decision to halt its £250m share buyback programme, having spent only £100m to date. The decision, coupled with the huge cash outflows evidenced by C&W's annual results, raised concerns that the company is perhaps experiencing a further cash squeeze as it tries to turn around its UK business.
After pumping £98m into its pension fund and spending £608m in cash on Energis, the company has £343m in the bank. Finance head Tony Rice denied a cash squeeze, saying: "I want to build as strong a cash position as possible because there are some very good high-return possibilities out there, not least in the international business."
Away from the blue chips, the FTSE 250 closed up a very healthy 136.5 points at 9190.5. Despite this move, CMC Markets, the spread-betting and trading firm, announced it had decided to withdraw its proposed listing on the exchange, blaming recent declines in the index. The move comes despite what CMC said has been a positive reception on its investor roadshow. Meanwhile, the small cap index closed up 25.5 points at 3379.1.
Shares in the London Stock Exchange dropped 110p to £10.79, despite its better than expected results, as the chief executive, Clara Furse, made it plain she wants the business to remain independent, despite other bourses seeming to be jumping in and out of bed with each other as fast as contestants on Big Brother.
Shares in 888 Holdings, the web gambling firm, was down 5p at 193.5p, under pressure from concerns about impending US legislation. After the market closed, the US house judiciary committee did indeed approve legislation proposed by Virginian Republican Bob Goodlatte which would outlaw online gambling. It remains unclear whether the proposed law will make it to floor votes in the House of Representatives or the Senate as there is little legislative time remaining before elections in November. Traders said that, regardless, shares in rival PartyGaming - up 1p at 123.75p - are expected to take a knock this morning.
Down on Aim, shares in football agency First Artist closed up 0.62p at 9.625p after it said it was working on a number of potential acquisitions. QXL Ricardo, meanwhile, closed up £13.59 at £119.71 as the online trading platform, once seen as Europe's answer to eBay, reported its first annual profit, just under £1m. Mayborn lurched 18.5p to 497.5p as the babycare and household products group agreed a 500p-a-share bid from Jake Acquisitions, a buyout vehicle backed by 3i which values the business at £116.3m.
Ramco Energy dropped 9.25p to 13.5p after the oil explorer admitted litigation in Texas and Scotland could jeopardise its ability to trade or even force it to call in administrators.
Two new issues. Monto Minerals joined Aim at 12p a share, raising £16.7m. Shares in the business valued at just shy of £23m ended the day at 12.5p. Arian Silver Corporation, which technically means the company is called Silver Silver Corp as Arian is Welsh for silver, joined Aim following its reversal into Hard Assets. Its shares closed up 1.5p at 28.5p.
Last call for Marconi
What little is left of Marconi looks likely to disappear from the stock market. Yesterday Telent, the rump of Marconi left after Ericsson snapped up the company's telecoms equipment operation, announced it had received a takeover approach from New York financial buyer Fortress Investment Group. The offer, recommended by the board, would value Telent at 529.5p a share or £346m and shares in Telent closed up 44.5p at 512p. News of the approach, which has received clearance from the Pensions Regulator, came as Telent announced a £2m fall in underlying profits from continuing operations to £27m. Revenues slid to £312m from £331m. The offer will be finalised in the next few weeks after checks that big customers will not defect.