REGUS GROUP bounced off Wednesday’s six-month low on word that the serviced office provider is on the verge of making a further acquisition just two months after regaining control of its British business.
In April, the FTSE 250 company underlined just how far it has recovered since its postmillennium financial crisis by buying back for £88 million the 58 per cent stake in Regus UK it had sold to Alchemy Partners four years ago. Followers hear that Mark Dixon, chief executive, now has another deal up his sleeve: the purchase out of administration of Gainsborough Business Centres, which, like Regus, was an early pioneer of the British serviced office sector. Gainsborough has eight sites in London and the South East — two of which, in Crawley and Slough, are expected to be closed — two in Scotland and one in the US. Regus put on 3¾p to 106½p, with the FTSE 250 up 319.6 to 9,101.8.
A clutch of small-cap pharmaceuticals prospered on the view that recent severe falls had been unwarranted. Alizyme clawed back 18p to 116p as Piper Jaffray, house broker, repeated its 236p target, and Evolution Securities flagged a strong balance sheet. Elsewhere, Acambis, also favoured by Evolution, put on 22p to 154p as Goldman Sachs suggested a third long-awaited smallpox vaccine contract from the US Government is close to being awarded.
Simon Group, the port operator, gained 6¼p at 61p as Montauban, an offshoot of Cobelfret, the Belgian shipping line, picked up the 18.7 per cent stake of Utilico Investment Trust at 60p, taking its interest to 47 per cent and triggering a mandatory cash offer at its purchase price. Dobbies Garden Centres leapt 52½p to 777½p after Wednesday’s late-session disclosure that the West Coast Capital investment vehicle of Sir Tom Hunter, which recently bought Wyevale Garden Centres, has picked up a 3.7 per cent stake.
Tomkins firmed 4½p to 271½p, despite the disclosure that William Jones, an executive, has sold 100,000 shares at 26818p. Soco International advanced 44p at £12.32 as Robert Cathery, non-executive, bought 30,000 shares at £12.38 after yesterday’s annual meeting.
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Avocet Mining put on 11½p to 149½p as Ambrian Partners advised clients to buy on recent weakness in gold prices. Bodisen Biotech, the Chinese maker of organic fertiliser, jumped 68p at 528p on reporting strong second-quarter sales.