City File: Union Discount

WE tipped Union Discount last August at 43p, then again in February at 99p. But with the shares at 134p, we're still bullish over what was once the City's premier discount house. Bid and merger talks came to nothing this year and there are residual losses to come from an earlier leasing venture.

Nevertheless, Union broke even in the last half of 1992, and should now be making profits for the first time since 1990. Last week, two rival discount houses, Gerrard & National and King & Shaxson, reported a surge in profits following our withdrawal from the ERM and the subsequent fall in interest rates. A bid for Union from a continental bank is still on the cards to add spice to what is now an excellent recovery prospect.