Shares made an edgy start today as Friday’s falls on Wall Street hindered activity in early trading.
The FTSE-100 Index fell 9.5 points to 5941.2 in the opening minutes, with few hints to be taken from mixed Asian markets.
Amid few announcements among the blue chips, dealers’ focus moved to the smaller companies.
Stakes were raised in the all-American takeover battle for packaging company Field Group as Chesapeake Corporation upped its offer to 360p a share from 320p. Shares in the group jumped 6p to 362.5p.
Biotechnology group British Biotech announced a further setback in trials for its pancreatic cancer treatment but reported some improvement in its losses. The group fell 4p to 22p – a 15% slide.
Reports abounded in the weekend press that Whitbread was set to make a bid for a smaller leisure-based rival.
Depending on which paper one believed, the target was either Vaux’s Swallow hotels group or pub and hotel company Greenalls.
Analysts paid more credence to the Greenalls reports and the group jumped 40.5p to 380.5p. Vaux edged 0.5p ahead to 298p and Whitbread remained at 853.5p.
Fasteners maker Haden MacLellan warned its 1998 results would be “significantly below expectations” because its costs had over-run.
Shares unzipped 11p to 40.5p – a fall of more than 21%.
Computer game company Rage Software announced it had clinched a publishing deal with Microsoft and said profits would more than triple in 1999.
Shares in the group, which makes the Striker football game for PCs, kicked 1p up the field to 16p.
PA News 15/02/99
