BUYERS returned to Home Entertainment, the owner of Britain’s second-largest video store chain, as a respected Swedish value investor emerged with a debut 6.1 per cent stake.
Shares in Home, which trades as Choices, have fallen 80 per cent from their peak four years ago following a collapse in profitability. An investor revolt, backed by 6 per cent-holder SVG Capital, the former Schroder Ventures, has gathered pace during the past few months, culminating in the move last month of founder Iain Muspratt, who still speaks for 27 per cent, to a non-executive role from April. With the rebels still said to be pushing for Home to go private, followers speculated that Peter Gyllenhammar, the smaller companies investor who cropped up on the register yesterday, may aid their cause. The shares rose 3p to 54½p, with the FTSE 250 off 2.8 at 9,240.7.
Ferrovial’s bid approach for BAA sent Associated Britsh Ports 40¼p higher to 469¼p as hot money bet that the port operator could be the next infrastructure owner to draw an approach. The clearance of an overhanging line of 4.5 million shares through Merrill Lynch at 590p provided further momentum. Warner Estate shed 44p to 667p as Jack Petchey’s Trefick, which mounted a tender offer five years ago at 317½p, used JPMorgan Cazenove and
HSBC to place 7.4 million shares at 665p, cutting its stake in the property fund manager from 24 per cent to 14 per cent.
ISoft recovered 3½p to 175p as UBS moved from reduce to neutral, suggesting the healthcare software provider could become attractive to larger players. A 220p price target from Evolution sent Telecom Plus up 6¾p to 163p.
Advertisement
European Goldfields gave up 3½p to 160p as Frank Timis, the miner’s controversial founder, declared the sale of £18 million of shares, trimming his stake from 18 per cent to under 8 per cent. The purchase of a debut 134,000 shares at 374¼p by Andy Harrison, its new chief executive, failed to stir easyJet, ¾p lighter at 376¼p. TEG Environmental firmed ½p to 66½p on a deal with Parkwood Holdings, up 1p at 59½p, to bid jointly for commercial-scale composting projects. HydroDec rose ¼p to 29¼p on being chosen by Dow Chemical for a trial to treat soil contamination.
Evolution Group ticked up 4½p to 154¼p as it emerged that Michael Spencer, chairman of rival Numis Corporation, has built a personal stake through contracts for differences.