FTSE in-depth: Germans fixed on Micro Focus
Rumours of a German bid approach had buyers piling into Newbury-based business software group Micro Focus International.
Geoff Foster: Still jittery about the Middle East situation and rising inflation, fund managers sold blue chips.
Its shares raced ahead to touch 324.5p before closing 27p or 9.5% up at 311.9p on gossip German technology group SAP had tickled the board's fancy with a £927m, or 450p a share, cash offer for the company.
Micro Focus is vulnerable. Its shares were sold down below £3 last August following a disappointing trading statement which said that 'revenues were flat in its first fiscal quarter and management has had to slash its sales outlook for the full year'.
It blamed the poor first-quarter performance on delays to several 'significant transactions' and fewer low-value deals across its operations.
A rally in the share price since has owed much to the appointment in October of Mike Phillips, who helped Morse stave off insolvency, as financial officer. But it's bid speculation that has been the major stimulant.
Multinational computer giant IBM, affectionately known in the US as Big Blue, has often been mentioned in the same breath as Micro Focus.
IBM's chairman and chief executive Samuel J. Palmisano has said that overseas acquisitions were still very much on the agenda.
888 Holdings jumped 4p, or 9.5%, to 46p on growing speculation that bookmaker Ladbrokes (0.9p off at 133.75p) is on the verge of announcing an agreed share exchange bid worth around 69p a share for the online gaming group.
Talk of an imminent drilling report on its interests in Greenland saw Cairn Energy touch 450.5p before closing 7.9p better at 439.15p.
Analysts have said that the deep waters of Disko Bay in Greenland could conceal treasures of North Sea proportions, with 4.1bn barrels of untapped crude oil waiting to be discovered.
Geological surveys have suggested that as much as 20% of the world's undiscovered but explorable gas and oil reserves lie under the Arctic ice.
Still jittery about the Middle East situation and rising inflation, fund managers sold blue chips at the outset.
The Footsie was soon 70 points off before rallying late to finish 20.87 points easier at 5,914.89.
Wall Street firmed 45 points at the outset but many US dealers were keeping their powder dry ahead of tomorrow's crucial US non-farm (employment) data.
Vedanta Resources climbed 50p to 2419.5p amid speculation the Indian government is on the verge of clearing its £5.9bn acquisition of Cairn India without any significant preconditions.
Worries that fuel surcharges which could add £160 to the price of a family holiday this year could hit summer bookings left TUI Travel 6p cheaper at 231.3p.
Profit-taking in the wake of excellent 2010 results left Carillion 16.6p lower at 357.7p. Broker Charles Stanley Securities reiterated its buy recommendation and target price of 460p.
The group's order book grew from £17.7bn to £18.2bn and it has more than £100m of cash in the bank.
Oilfield services group Cape soared 59p to 466.5p in response to pleasing 2010 results and news of the appointment of former energy minister, Tim Eggar, to the board as non-executive chairman.
Pre-tax profits rose 14% to £69.1m and net debt halved to £52.9m. Shareholders get a 12p dividend after having to do with nowt in 2009.
GlobeOp, the industry leading hedge fund administrator, jumped 40.5p to 400.5p following better-than-expected annual results. Total assets under administration increased in the year by 37pc to $149bn, while revenues surged to $189.3m from $156.5m. Oriel Securities is a fan and retained its £5 a share price target.
Gene therapy specialist Oxford Biomedica slipped 0.11p to 6.605p following results. It reported revenue of £11.2m, up 23%, and an operating loss of £8.1m. Singer Capital Markets expects positive share progression over 2011.
Hot Tuna firmed 0.09p to 0.245p after the surf wear and fashion brand company said it had appointed Melissa Sturgess as chairman. She comes with extensive experience on the boards of several UK listed resources companies including Sylvania Resources and Churchill Mining.
Impressive preliminary figures helped 4Imprint close firmer for choice at 254.5p. Pre-tax profits soared to £6.9m from £2.4m on revenues 19% higher at £200.8m.
New chairman John Poulter said that despite the wider threats to economic growth, the momentum developed in the past year is evident in the early weeks of 2011.
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