Bottom Line: Blenheim back in action

A pounds 200m splurge in the Eighties led to the label 'acquisitive' being tagged to Blenheim International, the exhibitions organiser whose 200 events span 11 countries.

Of late, however, there has been little activity on the takeover front. Only 5.8 per cent of Blenheim's pounds 239m turnover in the 16 months to December 1992 came from acquisitions.

Yesterday Blenheim signalled that the two-year quiet period had come to an end by issuing pounds 75.8m of convertible preference shares at pounds 1 each.

Blenheim ordinary shares, despite a forecast of a 14.5 per cent dividend hike, responded by diving in apparent alarm from 542p to 493p before rallying to close at 513p.

The issue, which will in effect wipe out the group's pounds 76m worth of borrowings, is intended to help fund a renewed clutch of acquisitions in the fragmented exhibitions market in Europe (particularly France) and the US.

Even without acquisitions, Blenheim's recent performance has been impressive. Profits were up by 32 per cent in the 16 months to the end of 1992 despite the recession, and analysts forecast further progress this year.

The pace of expansion is looking increasingly giddy. A 6.4 per cent net coupon and an 18 per cent conversion premium look bearable enough to console Blenheim's fan club but new investors may have more to lose.