Predator talk boosts Amvescap
THERE was a sudden flurry of speculative buying of Amvescap as takeover rumours did the rounds. Shares of Britain's biggest independent fund manager raced up to 329 1/2p on whispers of a possible bid from Deutsche Bank before closing 11 3/4p higher at 320 1/4p on turnover of 24.4m.
Amvescap has had an unhappy time of it and certainly looks vulnerable. On Wednesday it announced a halved interim dividend payment of 2.5p, the first cut in more than 10 years. Shareholders have been made to suffer as the company attempts to find £253m to extricate itself from the US mutual funds market-timing scandal.
Deutsche Bank is known to be on the acquisition trail and Amvescap's market capitalisation is currently only about 1% of funds under management. It is a valuation that any cash-rich predator, including the German giant, should now find hard to resist. Amvescap's 2001 peak was 1734p.
A Spanish press report that Telefonica is stalking the mobile phone group left mmO2 2 1/4p dearer at 94 3/4p. An mmO2 spokesman said: 'We are focused on organic growth but the company is run in the best interests of shareholders and so we remain open-minded'.
The Footsie remained in fine fettle, closing a further 8.1 points better at 4556.5. Wall Street bolstered sentiment in London with an early gain of 50 points as economic data showed inflation rose less than expected in August. Dealers still believe the Fed will raise US interest rates by a further 0.25% next week.
Still reflecting relief that it has decided not to counter Santander's £8bn-plus bid for Abbey National (1 1/2p easier at 571p), HBOS firmed 15 1/2p to 753 1/2p.
Hedge fund giant Man Group shed 28p to 1344p after downgrading its earnings-per-share forecasts because of negative performances by its key funds. For the current year it has shaved its earnings-per-share estimate to 95.6p from 106.6p, and for next year to 110.8p per share from 116.1p.
Not as sexy these days as it was in Lord Hanson's and the late Sir Gordon White's heyday, building materials group Hanson returned to prominence with a gain of 6 1/2p at 394 1/4p. It touched 405p initially after buyers responded to news of US plans to set up a fund for asbestos victims' compensation. In the Senate on Wednesday, Democratic leader Tom Daschle agreed to £78bn in overall funding proposed by Republican leader Bill Frist.
Colt Telecom, the telecom services group, buzzed 3p higher to 48 1/4p. It has cut its debt pile by more than £300m via the early redemption of two bond issues. It follows recent management changes at its UK and French divisions.
Troubled Iceland food chain Big Food Group improved 2 1/2p to 92 1/4p. Hungry punters hope that 22.1% Icelandic shareholder Baugur will use funds from the sale of its 10% stake in House of Fraser (1 1/2p easier at 113p) to launch a full-scale cash offer.
Former Hansard PR firm Financial Development Corporation held rock steady at 3 1/8p. Terry Ramsden, the former City whiz kid and racehorse owner, has bought a further 3.2m shares and now owns 8.3%.
Specialist magazine publisher Wilmington rose 6p to 119 1/2p following impressive annual results and news that the current year has started well. Numis says buy and analyst Lorna Tilbian says it is worth noting that Wilmington has freehold property worth upwards of £10m, equivalent to 12p per share.
TT Electronics sparkled at 167 1/2p, up 8p, after a strong return to profitability at the half-way stage and the board's forecast of improved profits in the second half.
Wallcoverings group Chapelthorpe lost 5 1/4p to 17p following a warning that first-half profits will be below those of last year. The company plans to provide £1.8m for bad debts and is to close its Canadian wallcoverings manufacturing facility.
• GAY Haines's Aim-quoted specialist recruitment consultancy Hat Pin is sitting pretty. It has about £1m cash in the bank for an earnings-enhancing acquisition and interim profits more than doubled to £306,000. Broker Evolution forecasts £570,000 for the full year and believes Hat Pin is cheap compared to its peers. It continues to benefit from the cyclical recovery in the advertising market. Shares hardened 1/2p to 62 1/2p.
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