Fuel card firm's four-star performance

By Geoff Foster for MailOnline
Updated: 04:50 EDT, 5 July 2006

FUEL card company Retail Decisions sported a four-star gain of 25p at 176p after revealing it has decided to engage in talks with 'bona fide' potential bidders following a number of unsolicited offers for the company.

Chief executive Carl Clump and the board recently rejected a rumoured 175p-a-share offer from FleetCorp of America. Punters climbed aboard in the hope that this time a deal will eventually be done and the take-out price could be nearer £156m or £2 a share.

Barclays and Royal Bank of Scotland were both mentioned as possible bidders, although industry sources suggest that another cash-rich US firm is in the frame.

Retail Decisions' European fuel cards are used by drivers of company-owned fleet cars. They have a low susceptibility to fraud and can be restricted to specific vehicle purchases.

In May RD announced a partnership deal with supermarket group William Morrison (¼p dearer at 202p) and now the Bradford-based group's 274 supermarket forecourts accept RD's fuel cards.

Controversial oil explorer Regal Petroleum gushed 15p more to 70p on confirmation of bid talks. Rumours did the rounds that JKX Oil & Gas, which has always shown an interest in the group's Ukranian assets, is interested in making an offer. Another jackanory suggested former boss Frank Timis may want to take the firm private.

But punters should not get too excited. Regal was forced by the LSE to make a statement because of the sudden rise in the share price. Talks are at a very early stage and could eventually prove to be fruitless.

One fund manager said speculators are surmising that Timis could make a small fortune by selling his 34pc stake in his other baby, Sierra Leone Diamond Company (4p cheaper at 189p) and then use the cash to take Regal private.

Digital photo-booth operator Photo-Me International, in which Goldman Sachs owns 10.2pc, rose 6¾p to 112¾p on talk of an imminent private equity 130p-a-share cash bid.

Last month, the group announced a strategic review which it said may or may not lead to an offer being made for the company.

With Wall Street closed for Independence Day, London was left up to its own devices. Trade was slow and the Footsie drifted to stand 36 points lower before elevenses. It later rallied to close only 0.9 off at 5,883.5. REIT conversion hopes and gossip that super rich Middle Eastern investors are big buyers of quality London office and residential sites helped properties feature.

Hammerson jumped 38p to 1241p, British Land 37p to 1333p, Land Securities 51p to 1879p and Liberty International 27p to 1119p.

Marks & Spencer climbed 11p to 598p after Goldman Sachs lifted its target price to 691p from 656p and added the stock to its Conviction Buy List ahead of next week's trading statement.

Like Diana Ross, mortgage bank Alliance & Leicester is still waiting. It fell 18p to 1149p in the absence of bid terms from French bank Credit Agricole.

Mail delivery firm DX Services soared 79½p to 410p after confirming a bid approach which may or may not lead to a cash offer for the company at 415p a share.

ReGen Therapeutics firmed 0.575p to 1.775p after announcing talks about a licensing agreement for its lead compound Colostrinin, which it hopes to develop as a treatment for Alzheimer's disease.

Profit-taking left medical devices group Futura Medical 3¼p easier at 82¼p. It confirmed it has entered into a development agreement with drugs giant GlaxoSmithKline to develop non-prescription treatment for erectile dysfunction.

Buyers gorged themselves on Aim newcomer Tasty. Placed at 52p, shares of the restaurateur touched 85 ½p before closing at 81 ½p for a mouthwatering premium of 29½p.

• EARLY stage biotech company Immupharma held at 57½p but could soon get a shot in the arm. The word is that its drug for the treatment of lupus, the chronic rheumatic disease which affects joints, muscles and other parts of the body, has been undergoing phase II trials and no significant side effects have been reported. Analysts believe it has potential market value of £2.14bn.