Forum Archive Index - May 2000

["David Reid" <aspex@ix.net.nz>]

From Daily Express London

Bid rumours link Whitbread with Thistle
BY NICK FLETCHER

Thistle Hotels' days of independence are numbered, traders believe. As recently revealed in the Sunday Express, the company has been circled by predators and now the word is that a deal has been done - with Whitbread the name in the frame.

An offer of 170p a share is said to be on the table, valuing Thistle at about £820million. Last night Thistle was steady at 121p.

"It makes sense," said Melanie Sharp, analyst at CCF Charterhouse. "Thistle needs someone with the time, money and patience to invest in it. Brierley Investments holds around 46 per cent and it would like to offload the stake because it hasn't exactly been a good performer."

Whitbread, down 24bp to 554dp, has made no secret of its desire to expand its hotels business.

Elsewhere, dealers reported a lack of direction in the market ahead of the Bank Holiday weekend. With little guidance from Wall Street, the FTSE 100 drifted 14.2 points lower to 6216.9 by the close.

It was a mixed bag for technology, media and telecoms shares. Among the day's big risers were telecoms group Energis, 177p higher at 2345p, and media giant Pearson, 118p better at 1927p. Software groups Cedar, up 85p to 767dp, and Alphameric, 29p higher at 262dp, were also in favour. But handheld computer maker Psion lost 28p to 519p and cable TV group Telewest fell 10fp to 246p.

Engineer Invensys was the biggest loser in the FTSE 100. It dropped 22bp to 268p on talk it might be interested in buying troubled Dutch software group Baan.

Mortgage bank Alliance & Leicester was 7dp lower at 599p after it reported lower mortgage lending in the first quarter.

Food retailer Iceland, which has just announced a merger with cash and carry group Booker, was frozen out by analysts at Morgan Stanley who downgraded their recommendation on the firm. Iceland's shares slipped 10dp to 237p. Technology investment group NewMedia Spark fell 6dp to 53dp as it made an all-share, £33.5million agreed offer for rival Softtechnet. NewMedia said that the move would give it a strong presence in the Indian market, which it had identified as an area for expansion.

Advanced Power Components lived up to its name, advancing 27dp to 295p after it unveiled a second major US order within the month - this one worth more than £1million. More deals are set to follow.

Troubled e-commerce group Freecom.net added 22dp to 127dp. It denied it had received a bid approach but said it had held tentative talks about selling a material part of its business.Over on Ofex, furnishings group Home Place was suspended at 19dp. The company said it had been looking to raise money with a move to AIM but had been told to postpone this in the current market conditions. It said it was "urgently considering" new avenues of funding.
© Express Newspapers, 2000 
 
David Reid