Rumours of a transatlantic alliance to buy drinks group Allied Domecq excited investors today as the London market began the week in positive territory.
Shares in Allied Domecq rose 3% or 15p to 536.5p on the back of media reports that French group Pernod Ricard had spoken to the US owner of Jim Beam bourbon about a joint bid.
Expectations that rival Diageo might try to cherry pick Allied’s wine portfolio pushed its shares up 4p to 742.5p, helping the FTSE 100 Index to rise one point to 5045.2 in the first hour of business.
Catering giant Compass rose 0.75p to 260.75p after its trading update reassured investors that it was continuing to win contracts and like-for-like revenues were on course to rise by at least 6% in the current year.
Takeover activity was brisk outside the top flight, with online auctioneer QXL Ricardo jumping 24% or 205p to 1050p after a consortium featuring senior management formally raised their offer for the company.
TalkSPORT owner The Wireless Group moved 3% higher or 2.5p to 92.5p on confirmation that it was studying a takeover proposal involving chief executive Kelvin MacKenzie and other senior bosses.
And shares in Highbury House Communications climbed 0.13p to 9.5p after it accepted a £96.5m takeover offer from Future, formerly known as Future Network. Future investors were less impressed as its shares fell 4% or 3p at 80.25p.
References: EGi News 14/02/05
