Yesterday's trading: McAlpine bid talk builds

By Geoff Foster for MailOnline
Updated: 03:04 EDT, 5 October 2007

You can't win them all. Many professional punters could only shrug their shoulders as oil services group Abbot gushed 63¾p to a year's high of 355½p on confirmation it has received several bid approaches, with investor 3i (34p higher at 1064p) strongly rumoured to be one of the interested parties.

Abbot had been punted more times than a rugby ball at Twickenham this year on persistent takeover talk. But the boys in dark glasses had recently taken revived speculation with a pinch of salt because of the surrounding uncertainty.

They must be kicking themselves, but unperturbed they moved on to another old favourite. They chased construction firm Alfred McAlpine up to 506½p before it closed 7p higher at 500p amid continuing gossip about a possible 590p-a-share bid from Carillion, 2¾p easier at 408½p.

Word is that the leading infrastructure and building services company will move on McAlpine before it gets the chance to demerge its business services arm from its infrastructure operations.

McAlpine left itself wide open for a takeover earlier this year when 20% was wiped from its market value in one day after it uncovered an alleged £113m fraud in its slate division, the most famous part of its business.

Reports that Swiss engineering group Sulzer has refused to rule out the possibility of returning with another offer for Bodycote International when Takeover Panel rules allow it to revisit after October 26, lifted the engineer 9¼p to 281¼p. Bodycote in April rejected Sulzer's original, £1.1bn or 344½p a share offer as too low.

Up 58.1 points at best ahead of the Bank of England's decision to keep interest rates on hold at 5.75%, the Footsie drifted on profit-taking to finish 12.7 points higher at 6,547.9. Wall Street lost an initial 42 point gain as dealers took profits ahead of today's crucial US employment report for September. Economists reckon 150,000 jobs were created during the month.

Beleaguered mortgage bank Northern Rock unsurprisingly attracted a lot of attention again amid continuing hopes of a rescue bid from private equity group JC Flowers. The shares touched 177p but boiled over to close 9.9p better at 161.7p.

Perhaps unsettled by news overnight of 3,200 miners trapped underground in a South African mine owned by Harmony, the fifth largest gold producer in the world, investors took profits in the mining sector. BHP Billiton lost 45p to 1702p, Xstrata 67p to 3278p and Lonmin 67p to 3555p. Anglo American shed 49p to 3248p.

Design software specialist Aveva soared 125p to 1090p after analysts upgraded their earnings forecasts following a bullish trading statement. Altium lifted its price target to £11 from £10.

A revival of takeover chatter helped Durex condom company SSL International climb 27p to 466p.

Office landlord Workspace rose 12p to 357p on hopes that property entrepreneur Jack Petchey will either bid for the company or flush out another predator.

Via Trefick, his Isle of Man investment company, Petchey has amassed a 21% stake in the company through contracts for differences. Workspace's net asset value at the end of June was 354p a share.

Nosy buying amid talk of a bid approach north of 100p a share lifted microwave radio and satellite transmission systems group Vislink 4¼p to 75½p. Oliver Ellingham, currently head of corporate finance for BNP Paribas Europe, recently joined the board as an executive director. In the past he has advised Hanson and Imperial Tobacco on acquisitions and strategy. Both have since been taken over.

The market expected good interim figures from Walker Greenbank (2p dearer at 54¾p) and was not disappointed. The upmarket wallpaper and fabrics group posted a 177% leap in pre-tax profits to £1.4m boosted by strong performances across all its brands, including Harlequin and Zoffany. Landsbanki raised its full-year profit forecast for this year by 19% to £3.13m and for next year by 12% to £3.68m. It lifted its target price to 79p from 66p.

A Merrill Lynch recommendation and 110p target attracted buyers to oil exploration group Afren, 8¼p up at 79¾p. The broker says the company has a well connected and proven management team and a strong visible production and reserve growth profile.

• Aim-listed institutional and private client stockbroker Merchant Securities jumped 6½p to 41½p on news it has gained nominated adviser (NOMAD) status by acquiring John East & Partners in a deal valued at £4.9m. JEP acts as nomad to 33 companies on AIM and is financial adviser to Plus market companies. Founder John East joins the board and will help chief executive Anthony Fabrizi take the group forward.