FREEPORT, the retail property group that last week admitted to bid approaches, ticked higher as another high-profile activist investor appeared on its share register.
The operator of discount designer outlets is 29.75 per cent owned by Laxey Partners, which routinely picks fights in the real estate and investment trust sector. Yesterday Dawnay Day, known for building stakes in companies with strong property asset backing, declared a debut 5 per cent holding, or 1.89 million shares.
That disclosure came after Friday’s admission by Freeport that it had received “very preliminary” takeover interest, with GI Partners, the private equity group, and Kenmore, a private property company, said to be the predators.
Dawnay Day is thought to have been attracted by Freeport’s write-down last month of the value of its investment properties, which caused its shares to fall. In particular, it is said to anticipate a pick-up in lettings at its Alcochete and Excalibur centres in Lisbon. Freeport said that it did not expect that the write-downs at the Portuguese sites “can be considered as permanent diminutions in value”. With Dawnay Day on board, Freeport firmed 3¾p to 448¾ p, with the FTSE 250 up 49.9 points at 9,303.9.
Bodycote International put on 7½p to 238p as Merrill Lynch moved from “neutral” to “buy” ahead of first-half figures on August 22. The heat treatment engineer has been one of the worst performers in its sector over the past three months, but Mark Troman, analyst, reckons Bodycote’s high operational gearing will work in its favour, given evidence of a pick-up in industrial production. Rok rose 11p to 557p before today’s first-half figures. Dresdner Kleinwort yesterday upgraded the Exeter-based construction services group from “add” to “buy”, citing recent share-price weakness.
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CSR improved 12p to £10.56 on picking up its first contract to supply a Bluetooth socket for Samsung’s forthcoming MP3 player. The acquisition of rights to software used in lottery retailing in China sent Betex Group up 2¾p to 49¾p.
Renold, the maker of industrial chains, put on 4¼p to 67¼p as a block of two million shares changed hands through KBC Peel Hunt at 70p, prompting talk of aggressive stakebuilding. Eckoh Technologies, the provider of speech recognition services, held steady at 13¼p, despite confirming that it has received a bid approach.