FTSE in-depth: Bid rumour lifts Quintain Estates
Share stakes in UK property group Quintain Estates have changed hands more times over the years than a pack of Paul Daniels' playing cards.
Yesteday's FTSE trading in depth by Geoff Foster
Veteran property investor Jack Petchey and colourful former Tottenham Hotspur director Paul Kemsley are among the many speculators who have been in and out of the stock like a fiddler's elbow on hopes that one day a bidder would pounce.
Alas, Quintain remains independent, but property sources suggest corporate activity could now be just around the corner.
Punters started to nibble yesterday and the shares added 1.25p at 44.50p on an early jackanory that a private equity player had bid major shareholder Caledonia Investments at least 80p a share for its 10.6% stake, prior to launching a full-scale cash offer for the company.
Another tale doing the rounds suggested that activist hedge fund Laxey Partners, which created a stir late last year when it acquired a 5.76% stake Quintain, is about to ruffle a few feathers by calling for change at the top and some action in the boardroom to enhance shareholder value.
Laxey has a long record of forcing change in British boardrooms and is currently agitating for a share buy-back at underperforming global investment trust Alliance (1.9p cheaper at 357p).
It is trying to persuade boss Katherine Garrett-Cox to introduce an automatic share buy-back when its price is less than 90% of the value of its underlying investment.
Quintain must look attractive to any cash-rich predator. Currently valued at only £230m, it is in the process of constructing Wembley City, an area which includes a Hilton Hotel and a 600-bedroom student accommodation scheme. It also has plans to create a new 700-space car park adjacent to the London Designer Outlet which it plans to open in 2012.
Earlier this month Quintain also said progress was being made towards creating a new income-generating fund and is on target to meet a £1.25bn funds under management goal.
The fragile Footsie lost an early 46 point gain to finish 58.25 points down at 5,935.76 amid continuing concern about the Middle East situation.
Wall Street lost 40 points in early dealings after Federal Reserve boss Ben Bernanke said before addressing the Senate Banking Committee that gains in oil prices were unlikely to unsettle the US economy, although if they remain high it could stall growth and boost inflation.
Support services group Capita soared 37.50p to 763.00p after announcing that it is in discussions with Zurich Financial Services regarding the potential extension of the terms of its existing contract to run some of the processes for Zurich's UK operations.
Rumours of a pending bullish circular lifted testing equipment group Intertek 53.00p to 1857.00p.
Investors ran for the exit at Kingfisher, 11.4p lower at 243.00p. They were spooked by a SocGen downgrade to sell from hold and warning that it's time to worry about B&Q, its DIY business in the UK, as it begins to face more severe consumer headwinds.
Down over 20% in a few weeks, online retailer Ocado rallied 12.3p or 6% to 213.00p. Shop broker Goldman Sachs came to the rescue, upgrading the stock to buy from hold and reiterating its six-month target price of 304p.
Profit-taking in the wake of the annual results left United Business Media nursing a fall of 61.50p at 651p. Pre-tax profits slipped 5% to £165.1m as the events and publishing group increased investment in data services and emerging markets.
Singer Capital Markets is bullish and says UBM has a superior growth outlook, driven by its core Trade Exhibitions business and significant emerging markets exposure providing a healthy visible base of growth for 2011.
Shares of transmissions systems group Torotrak accelerated 10.25p to 30.50p. Buyers climbed aboard on hearing news it has supplied a prototype transmission system for its key customer and licensee, TaTa Motors, for use in the TaTa Pixel concept car revealed at the 2011 Geneva Motor Show.
Licence payments of at least £6.7m are now expected from 9% shareholder Allison of the US, to preserve exclusivity rights. Charles Stanley Securities' target price is 40p.
Intandem Films edged up 0.25p more to 6.13p on further consideration of news of its collaboration with Los Angeles-based Libertine Films for the film K-11, which will premier at next year's Berlin Film Festival.
Jules Stewart, who is mother to Twilight star Kristen Stewart - will make her directorial debut.
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