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    July 7, 2006

    Bids news sends Shire, Corus higher

    Filed under: Companies, BA, Corus, PartyGaming, EasyJet, Shire, SAB Miller

    In London on Friday, equities markets saw declines for the day but ended the week slightly higher. The FTSE 100 dropped 0.02 percent to 5,888.9, but its closing level was good for a 1 percent rise over the week. Meanwhile, the FTSE 250 ended the session 0.3 percent lower to 9,431.6 but managed and 0.1 percent gain for the week.

    The airlines sector saw gains over the week. British Airways was up 3 percent to 359p on the strength of an 8.7 percent gain to 425p by low-cost air carrier EasyJet, which adjusted its full-year profit growth forecast upward to between 40 and 50 percent. Earlier, it had said that profits would grow around 15 percent for the year.

    Shire Pharmaceuticals added 1 percent to 811p amid talk that it could be the target of a private equity bid. UBS said that an offer of up to £10.50 per share for Shire could still make a buyer good profit.

    Among steelmakers, Corus gained 4.4 percent to 451p as rumors continued that two Russian millionaires, one the owner of Russian company Severstal, are considering a joint bid.

    SAB Miller dropped 1 percent on Friday to 960½p as investors feared that this weeks Florida Supreme Court ruling vacating a $145 billion (£79 billion) damages award against US tobacco companies would lead to the sale of 28.7 percent of the brewer by Altria. The concerns have arisen because Altria, which also owns US cigarette maker Phillip Morris, is free to break off parts of its holdings now that it no longer has to worry about paying any part of the damage award. Not all analysts, however, are convinced that Altria will sell its stake in SAB.

    PartyGaming dropped 5.9 percent to 108p, also on legal activity in the United States. Investors in the internet gaming company are worried about a debate in the US House of Representatives, scheduled for next week, on legislation that is designed to outlaw online gambling in the US. Analysts expect the new law to pass in the House, but don’t believe that it will make it to the Senate for a vote before elections in November.





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