FTSE in-depth: Google in with a shout for Yell

 

Yellow pages publisher Yell screamed 13%, or 2.2p, higher to 17.84p on gossip that corporate activity is just around the corner.

Yellow Pages

Almost 56m shares changed hands as dealers heard that Google could be lining up a £708m, or 30p a share cash offer.

The shares reacted from the high 19.92p after analysts said they would be flabbergasted if any bidder made a move for an accident prone group that is sitting on a mammoth debt mountain of £3bn.

Yell said in late-July when reporting lower quarterly profits of £16.6m, down from £18.5m, that it was feeling the effects of a 'challenging' trading environment and the anticipated economic recovery was 'proving slower than expected'.

Analysts at Prime Markets then advised clients to sell, saying that the recent history of Yell was a series of trading statements punctuated with the odd bright spot, but with an overall impression of a company in terminal decline.

Blinkx, another company often mentioned in the same breath as Google, soared 8.5p to a peak of 87.5p. The world's largest and most advanced video search engine was demerged from Autonomy in 2007 and has risen from 15p since May.

Investors switched on in their droves after Korea's Samsung Electronics announced it had selected Blinkx for participation in applications for Samsung phones. The Blinkx Beat 'app' is a never-ending play list of the most popular videos.

Autonomy, which still sits on 13.9% of Blinkx, jumped 85p to 1716p. Rumours that Microsoft and Oracle are stalking the group, and that one could soon spark a bidding war by tabling an opening shot offer of £6bn or £25 a share, attracted renewed speculative support to the stock. Analyst Steve Malcolm at Evolution Securities sparked profit-taking in Cable & Wireless Worldwide by saying he sees little logic in AT&T bidding for the company - or any other large telecommunications group for that matter. The close was 2.15p lower at 69.75p.

The Footsie, 4.63 points better at 5,371.04, paused for breath following Wednesday's leap of 141 points on the apparent revival in US manufacturing.

Fund managers kept their powder dry ahead of today's crucial US jobs report. They anticipate a headline decline in non-farm employment of 100,000 with the unemployment rate rising to 9.6% from 9.5%.

Wall Street posted an early gain of 10 points following a surprise 5.2% leap in US pending home sales in July and news that weekly jobless claims fell by 6,000 to 472,000 for the week ended August 28.

A revival of break-up bid hopes lifted United Utilities 5.5p to 588p. UU was the first postprivatisation 'multi-utility' following the £4bn merger of NW Water and regional electricity company Norweb.

Broker Investec believes the market appears to be overlooking BAE Systems as a solid global business with secure earnings and a 6% dividend yield. It upgraded the defence stock to buy from hold and the shares responded with a gain of 11.3p at 313.5p.

Drugs giant AstraZeneca eased 5p to 3278p. The European Commission has issued a positive decision for the approval of once-daily Seroquel XR extended release tablets as an add-on treatment of major depression in patients.

Attracting increased demand since BHP Billiton bid for Potash Corporation, the world's largest fertilizer producer, Sirius Exploration firmed 0.75p more to 6.38p. Sirius is the only London-listed potash company-Guinea-based iron ore development company Bellzone Mining jumped 5p to a record 62.25p after announcing that the Mining Convention for its Kalia Mine and associated infrastructure, the approval and signing of which were announced on July 28, has been passed into Guinea law through Presidential Decree.

Anglo Asian Mining, the emerging gold producer, rose 3.25p to 29.5p after reporting a maiden interim profit.

Following the discovery of a 13.75 carat diamond at its BK11 diamond mine in Botswana which commenced production in July, Firestone Diamonds sparkled at 26.74p, up 3.5p. It increases the potential value of the mine by up to 68%.

Kryso Resources added 0.5p to 15.5p following a placing of 73.2m shares at 15p a share to raise £10.99m. Sinclair Pharma firmed 0.25p to 27p following a £19m fundraising at 28p a share. The funds raised will help pay down debt and fund acquisitions.

XCAP's analyst Tim Freeborn says inkjet printer Xaar, 3p better at 151p, is grappling with the problems of success. Its Xaar 1001 head printer has seen huge demand from ceramic tile printers and it has had to ration supplies to 50% of their orders. The situation will not ease for a year while it waits for £2m laser ablation workstations to arrive. Customers will remain loyal, but it looks a sitting duck for a bid.