Beyond the Footsie: Thurs close

13 April 2012

SMALLER companies closed higher, supported by another broadly positive session by the wider market, as economic recovery hopes continued to attract investors to UK equities, dealers said.

The FTSE Smallcap index ended the day 13.3 points higher at 2,370.1, outperforming the FTSE 100, which closed up 6.1 points at 4,223.5 as a cautious start by Wall Street dented sentiment.

A flurry of bid activity provided the main focus for the smaller companies. Safestore jumped 7 to 43 1/2p after recommending a cash bid from management buyout vehicle Belazure Acquisition at 44 per share, which values the whole group at £39.8m.

Blooms of Bressingham also gained 7 1/2p to 45 after chairman Charles Good bought 50,000 shares in the group, lifting his holding to 9.09%, sparking MBO speculation.

Mouchel, the acquisition-happy building services company, also saw its shares advance 27 1/2p to 208 1/2p after it made an all-share recommended offer for rival Parkman Group.

The bid, which valued Parkman at £78.3m before trading started, was on the basis of 1.2305 new Mouchel shares for each Parkman share. Mouchel also sweetened the news by announcing a second interim dividend of £1.45, which Parkman shareholders will not get. Parkman shares added 19p to 255p.

Elsewhere, Jacques Vert gained 1 3/4p to 24 3/4p, lifted by continued bid speculation after Waillim Ltd acquired a further 2.512m shares yesterday, raising its stake in the clothing retailer to 26.8%.

Avanti Capital was up 0.28p to 2.40p after it revealed plans to buy up to 28 sites owned by troubled nightclub operator Po Na Na. In its first investment as a private equity business, Avanti Capital is providing up to £7m of acquisition and working capital finance for the buyout. Po Na Na went into administration in May.

On the downside, Eurasia Mining fell 0.38p to 6.12p after raising £230,000 via a share placing at 5p each.

Also among the losers, Motion Media dropped 1p to 11.12p on profit taking after hopes of a rumoured telecoms deal faded.

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