ALEX BRUMMER: Bailey must lead the way on interest rate cuts (and that might give the Tories a glimmer of hope on election day)
MPs set to grill FCA boss Nikhil Rathi on the City watchdog's plans to 'name and shame' firms it is investigating
House prices to jump 2.5% as economy brightens and mortgage rates fall, says Savills
My husband's ex-wife was rich and he expects me to spend as flamboyantly as she did: What can I do? Money psychotherapist VICKY REYNAL replies
The cheap Chinese electric cars that COULD be worth buying: ROB HULL picks best of the budget EVs that are about to hit the UK
I've been told I can get private pension at 55 because I was born in a two-year window in the 1970s: Is that right? STEVE WEBB replies
How much longer can insurance firms persist with a tax on the poor? JEFF PRESTRIDGE says those who pay monthly are being hit hard
Former business minister urges officials to roll out red carpet to convince Unilever to list ice cream arm in London
Almost beyond redemption: Investors are pulling money out of UK funds on a worrying scale, says RUTH SUNDERLAND
Attacks in the Red Sea are escalating and will reduce trade from Far East to Europe by a fifth, warns Maersk
Billionaire Czech Sphinx bidding for Royal Mail insists he would not slash jobs if he succeeds
London's Alternative Investment Market sees liquidity plunge as investors turn to the US
Baroness Bowles: Nationwide using 'sneaky' tactics to avoid putting £2.9bn Virgin Money takeover to member vote
MIDAS SHARE TIPS: Spectra Systems is last line of defence in war on fake stamps and banknotes
Elderly father duped into £25k debt by scam company Marks Art... TONY HETHERINGTON tracks down the culprit in Cyprus
Britain ditches diesel: Consumption is down almost a billion litres in a year as petrol demand shoots up
Savvy savers withdraw £5bn from current accounts in bid for better interest rates
We're financial experts - this is how you can use your Isa and pension to grow your wealth in the new tax year
Penthouse in Devon's Grade I listed Flete House has turreted roof terrace and is for sale for £450k... but there's a BIG catch
Older workers will sustain growth, says HAMISH MCRAE: Japanese-style tax breaks could make them stay
21 investment funds that insiders recommend to grow your money: One would have turned £1,000 into £1,520
Trick that can DOUBLE your child's savings... without costing a penny more: Maxing out this account could provide enough to buy a home outright at 27
As probate delays persist, should you get insurance to spare family an inheritance tax nightmare?
Most parents think their children will be worse off than they are: Here's how to cut inheritance tax if you help them

Yesterday's trading: Buyers circle Rathbone Bros

By Geoff Foster for MailOnline
Updated: 08:08 EDT, 31 July 2007

View
comments

Another famous old City institution could be about to lose its identity. Rathbone Bros, the fund and wealth management services provider, whose history stretches back 265 years, is rumoured to be up for sale.

Informed City sources suggest that potential buyers have been sounded out and that an offer in the region of £800m would probably gain acceptance from major 10.8% shareholder, Caledonia Investments. Rathbone's shares jumped 71p in a thin market to 1286p.

Rathbone last week reported betterthanexpected interim figures showing a 27% gain in underlying pretax profits to £25.9m from £20.4m, excluding a £1.9m gain on the sale of shares in the London Stock Exchange.

The interim dividend was lifted 18.5% to 16p. Total funds under management jumped 9% to £13.3bn.

> Where next for shares?

Rathbone has grown via a series of acquisitions over the years. It bought investment manager Laurence Keen in 1995 and then Nielson Cobbold in 1996 before merging the two in 1998.

WH Ireland, Manchester-based stockbroker, rose 7½p to 140p following strong interim results. It enjoyed the fruits of the bull market reporting a 58% leap in pretax profits to £3.69m and a 39% hike in the dividend to 2p.

Turnover was up 35% to £21.5m, with stockbroking ahead by 34% to £14.8m and corporate finance by 45% to £5.7m. Funds under management grew to £1.5bn. The company says it continues to make good progress in the second-half but markets are more volatile. You can say that again!

Oriel Securities is bullish and says the net asset value of 115p a share could be further boosted at year end when the company anticipates a 'highly significant uplift' in the value of its Manchester HQ on completion of its refurbishment.

Elsewhere, there was widespread relief when banking giant HSBC (12p dearer at 892½p) helped steady the ship by saying that bad US debts were not growing.

The fragile Footsie, which plummeted 370 points or 5.62% last week on growing worries about the risky US sub-prime mortgage market, rallied 41.3 points by mid-afternoon before running out of steam. It closed 9.1 points easier at 6,206.1.Wall Street traded 50 points or so either side of Friday's close in the early stages.

Reflecting higher metal prices and a Merrill Lynch price target upgrade to £20 from 1860p, Vedanta jumped 83p to 1701p.

Antofagasta added 28p to 702p, Rio Tinto 113p to 3451p and BHP Billiton 42p to 1403p.

Friendless of late on fears about seasonal stock overhangs, margin erosion and risks to earnings forecasts, fashion retailer Next put on 46p to 1842p. Kaupthing upgraded to hold from sell and believes the company should be able to enter the new Autumn season in better shape than feared and with ambitions to enhance fashionability.

Still awaiting the outcome of protracted takeover talks, engineer FKI firmed 9¼p to 110¼p. Soco International gushed 129p to 1894p on an upbeat Drilling update which confirmed an initial discovery on the 'E' prospect in Vietnam, the largest prospect in the company's portfolio.

Latest market data

null

JKX Oil & Gas rose 26½p to 346p on talk of a pending bullish circular. Last week it unveiled plans to buy a gas field in southern Russia for £24.2m, its first significant venture outside the Ukrainian market.

Marketing, sport and entertainment management group First Artist rose 11½p to 105½p after saying it is trading in line with expectations. Its event management business-The Finishing Touch, registered another-record profits month in June.

No-one wants to eat ice-cream in the rain - ask Hill Station. Shares of the ice cream maker softened ½p to 1p after the company reported a sharp drop in sales in May and June due to the monsoon-type weather. It also plans to raise £3m to help fund the acquisition of The So Real Ice Cream Company. All it needs now is for the currant bun to shine.

Aim-listed Central African Gold sparkled at 56½p, up 6½p, after announcing an increased revised mineral resource estimate at its Bibiani gold mine in Ghana.

On PLUS Markets, Sandhaven Resources improved 1½p to 160p following its acquisition of certain oil and gas leasehold interests in Texas from Oak Creek Oil & Gas.

Canadian nickel miner Landore Resources eased ¼p to 19¼p on scrappy selling but should rally today. Word is the company will today roll out its fifth drilling report so far this year and it will exceed expectations.

• Another resources company from the John Teeling stable starts trading on Aim today. With a market capitalisation of £5.3m at the placing price of 35p, Connemara Mining should attract interest.

The zinc mining and exploration company has acquired blocks of assets in three specific regions in zinc -rich Ireland. Working together with Teck Cominco, it should have first drilling results by the end of the year.

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.