MINERVA surged more than 6 per cent in late-session trading amid murmurs that Fidelity has been approached for its 11 per cent stake in the underperforming property developer.
Rumours of attempted stakebuilding in the £440 million company have been circulating since before Christmas, but gained urgency yesterday on word that a possible predator will break cover today.
The whisper suggested that the buyer is a Middle Eastern investor who has sounded out Fidelity on disposing of its 17.7 million shares, possibly at up to 340p a share. Analysts note that Minerva is vulnerable, having been left behind by the rally in real estate stocks because of the lingering damage of the Allders debacle and a wait-and-see strategy by institutional investors, who seek proof that the recovery strategy of Salmaan Hasan, its new chief executive, is taking effect.
However, sceptics noted that Tim Garnham, Minerva’s development director, sold 114,770 shares on Monday, an odd move for an executive director of a mid-cap company said to be in play. Minerva leapt 16¾p to 290p, with the FTSE 250 off 34.8 points at 8,846.8.
Elsewhere, hot money switched out of Mowlem, down 16¾p to 215p, as Balfour Beatty declined to make a counterbid against Carillion, and pursued John Laing, up 6p to 327p on hopes that it could be the next takeover target among PFI contractors.
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Bespak leapt 36½p to 566½p after reassuring first-half results and a suggestion by Investec Securities that American and European regulatory approval for Exubera, Pfizer’s inhaled insulin drug, for which Bespak makes the inhalers, could come as soon as this month. Analysts note that last week Pfizer paid $1.3 billion to acquire the European distribution rights to Exubera from Sanofi-Aventis, suggesting that approval is close.
Bellway fell 27p to £11.05 as UBS moved from “buy” to “neutral” after the housebuilder’s 19 per cent outperformance over the past three months.
Amino Technologies fell 5½p to 157p on fears of increased competition after Motorola’s acquisition on Tuesday of Kreatel, a Swedish rival set-top box maker. Adastra Minerals, the African cobalt venture, jumped 34½p to 122½p as First Quantum Minerals, off 32½p at £18.25, unveiled an all-share bid.
Planit Holdings shed ½p to 23½p on buying Pathtrace, a privately owned developer of computer-aided manufacturing software, for £5 million in cash.