Market report: Tuesday close

By Tom Nicholls
Updated: 12:00 EDT, 19 September 2006

Is the Henderson Fund Managers £886 million takeover of John Laing a done deal?

The approach from Henderson, revealed here last week, prices shares in Laing at 355p each, above what Henderson offered just before Christmas when it first came knocking for the infrastructure and Private Finance Initiative investor.

However, City traders believe that while the price, a 29% premium to where the shares were last week, is not necessarily a steal, there is plenty of Australian fund money (think Macquarie) and Spanish construction interests (Abertis or Ferrovial, to name two) that could yet look to upset the deal.

Laing chairman Bill Forrester admitted that other interest had been shown, and the shares today went charging past the offer price, up 23¾p at 364p.

The FTSE 100 index slipped 44 to 5846.2. The Dow, down 20.5 at 11,534.5, failed to provide support ahead of tomorrow's US interest rate decision.

Miners were on the back foot. Copper producer Kazakhmys was down 56p at 1210p even though half-year earnings have already exceeded those of the whole of 2005, thanks to buoyant commodity prices. Pipping analysts' forecasts, pre-tax profit rose 174% to $984.5m (£524m) as average realised copper prices soared 88%.

But on the downside, says Richard Hunter at broker Hargreaves Lansdown, the company is heavily exposed to the copper price and to the politically risky former Soviet Union. Fellow miner Xstrata lost 54p to 2151p, having rallied yesterday on rumours Brazil's CVRD may be interested in a tie-up. Rio Tinto eased 65p to 2409p.

Oil and gas producer Sterling Energy gave up ¼p to 16½p after reporting a 150% rise in pre-tax profits to £7m. There is much interest in Sterling's assets in Madagascar, where it is neighbour to exploration blocks that are exciting US giant Exxon.

Oil watchers are also pointing out that international value investor Capital Group, a big holder of Exxon, has emerged as a 6% shareholder in Sterling.

Mid-cap Burren Energy extended yesterday's winning run - prompted by strong interims - after Citigroup reiterated its buy call and 1155p target. The shares added 19½p to 934p.

Marylebone Warwick Balfour, the property developer behind hotel chains Malmaison, Hotel Du Vin and department store Liberty, is offering backers the chance to cash in their shares at between 205p and 215p a time after property disposals totalling £500m.

MWB's share price has risen 40% to more than 200p since the start of 2006. Pre-tax profits of £1.3m for its first half to the end of June compare with losses of £8.9m last time. MWB shares were up 3p at 207p.

The boom in commercial property is lining the pockets of agents at Colliers CRE as fee income rose 9.1% to £36.1m in its first half to end-June. But the agency wants more of the action in France, Germany and eastern Europe as it ramps up expansion plans for the Colliers International brand.

Colliers has just opened in Madrid and picked up a 60% share in an Irish operation. Set-up costs took a chunk out of pre-tax profits, down to £1.4m from £2.4m last year, but confidence is reflected in a 10% rise in the interim dividend to 1.41p. The shares were 2½p lower at 220p.

Financial services group Bank of Ireland has described momentum across its businesses as 'very strong' especially at its UK financial services division. It predicted a 'strong' full-year performance, and the shares rose 24 cents to e15.24.

Net profit at Aim-listed investment bank Golden Prospect, which owns stockbroking firm Ambrian, surged 53% to £5.38m in the first half and the shares ticked up 2p to 57¾p.

Trafficmaster slid 2p to 52p despite signs a review of the business is yielding results. The company, which supplies satellite navigation devices, made an operating profit of £1.9m in the first six months of the year against a loss of £500,000 12 months earlier.