Metal trading group MG heads for pounds 200m float at 215p a share

Market Report

MG, THE German metal trading group, was seen as an 18-carat bet in the market yesterday amid talk that its Monday flotation will value the company at over pounds 200m.

Dealers' whispers suggest that MG, one of the world's leading independent metal traders, will be priced in the middle of its 200-230p range, at around 215p, giving its 100 million shares a total value of some pounds 215m.

According to the market talk, the MG offering - masterminded by Commerzbank, Cazenove and Lazard - has received a reasonable response from small companies' investors and specialist funds.

The three banks kept mum yesterday but rumour has it that a float at 215p will be seen as a minor success for MG's advisers given the recent tumble in the London market for small and medium-sized companies.

A market value of over pounds 200m should also keep MG's parent, the German industrial giant Metallgesellschaft happy. The unpronounceable conglomerate is planning to retain stake of around 20 per cent and wants to see its metals offshoot get off to a solid start.

The Teutonic industrialists could do worse than copying Kingston Communications. Since coming to the market in July, the Hull-based phone group has risen over 45 per cent. Yesterday it added another 51.5p to a record 428.5p amid talk of an impending strike or of a major deal. Dealers believe that Kingston is too small too survive in the tough world of mobile telephony and it will not be long before a UK or European rival shoots this sitting duck.

Colt Telecom, 25p higher to 1,230p and Energis, 33p lower to 1,467p were mooted as predators. Alternative rumours suggested that Kingston is about to clinch a media deal with a blue-chip group - possibly BSkyB, 2p lower at 585p. An alliance on pay-per-view and video-on-demand could be on the cards.

The telecom sector was further excited by confirmation of the much-rumoured float of Scottish Telecom by Scottish Power, 15.5p higher at 601.5p, and a further rise by BT, 26p better at 948p, still revelling in Thursday's deal with AT &T. Vodafone Airtouch rose 10p to 1253p on continued speculation of an imminent deal with Bell Atlantic.

The overall market had a confusing session as the expiry of future and options contracts clouded trading for most of the day. The FTSE 100 managed to finish 25.2 higher at 6039.8 - just above the psychologically important 6,000 barrier. The blue-chip index survived almost unscathed a flurry of derivatives-linked programme trades in mid-morning and put together a mini-rally in the afternoon as New York opened sharply higher.

The second liners also rebounded from recent slumps, with the FTSE 250 ending 15.9 better at 5,854.1 and the SmallCap edging 3.6 higher at 2,766.4.

Heavyweight stock HSBC helped to drag the FTSE 100 higher with a 27.5p jump to 742p. There is some talk that the Hong Kong bank's troubled acquisition of Republic New York could be saved by a report by accountants KPMG.

Rival Barclays shed 35p to 1,631p after being sued by mutual Nationwide over its cash machine charge. Insurer CGU jumped 20.5p to 970.5p on revived takeover rumours. Germany's Allianz is the tipped predator.

Mining group Billiton dug up a 9.5p rise to 250p after good results from Australian rival BHP and vague bid talk.

Building materials group Hanson, 14p higher at 473p, benefited from a sector rebound and talk of acquisitions. Wild rumours pointed to Rugby, 3p higher at 103p, as a target. However, the cement maker, results next week, is more likely to be bought by a European competitor such as France's Lafarge.

Retailers were on the cut-price shelf as John Lewis poor figures heightened fears of a slowdown in consumer spending. GUS plummeted 24.5p to a near five-year low of 561p on concerns over trading at Argos, while Debenhams shed 10.25p to 319.75p on talk that the warm autumn weather has kept shoppers away from the high street.

Stagecoach fell 7p to 184p on its imminent exit from the FTSE 100. Concerns over a bus strike in Manchester also depressed sentiment although the company said that losses will be minimal.

Dairy group Unigate milked a 30p rise to 355p after denying rumours of a loss of its contract to supply Tesco, while rail engineer Jarvis soared 18p to 280p on revived talk of a major contract with Railtrack, 3p lower at 1,176p. Computer specialist Parity climbed 31.5p to a yearly peak of 265.5p on vague talk of a bid or a large contract, just like paper group Arjo Wiggins, 11.75p higher at 195p.

Pharmaceutical group Medeva plunged 36.5p to 132p after rejecting a bid, possibly from rival Elan, 22.5p lower at 2002.5p. A hostile strike is now rumoured.

Carpet maker S Lyles rolled out a 14p rise to 58p after receiving a 60p- per-share management buyout bid, while IT group Kalamazoo beamed 9.5p higher to 80p after a deal with IBM to build car computers.

Benson Crisps crumbled 4p to 50p after a poorly-received puff on Channel 4's "Show Me The Money" programme.

SEAQ TRADES: 100,301



INTRIGUING takeover whispers are swirling round the Israeli-based superstock BATM Advanced Communications. The high-speed data specialist could have caught the eye of two US rivals; dealers say 3M and Cisco might be interested. Shares have soared from 153.5p at the start of the year to yesterday's 2,582.5p. Further upside is likely if, as rumoured, the interims due out in two weeks bring some major deal.

KEEP AN eye on the property minnow Newport Holdings, unchanged at 127.5p. The company said yesterday that the holders of 45 per cent of its shares rejected a hostile bid from investment vehicle Trefick. Newport is believed to be lining up an alternative deal with a rival real- estate group. The company has had talks with rival Ashquay, flat at 29p yesterday, but the rumoured deal is not thought to involve that company.

In 2006, Pluto was reclassified as a 'dwarf planet'
scienceBut will it be reinstated?
Destructive discourse: Jewish boys look at anti-Semitic graffiti sprayed on to the walls of the synagogue in March 2006, near Tel Aviv

As anti-Semitic attacks rise, Grant Feller re-evaluates his identity

Arts and Entertainment
Adam Levine plays a butcher who obsessively stalks a woman in Maroon 5's 'Animals' music video
music'Animals' video 'promotes sexual violence against women'
people Biographer says cinema’s enduring sex symbol led a secret troubled life
newsGlobal index has ranked the quality of life for OAPs - but the UK didn't even make it into the top 10

Kirstie Allsopp has waded into the female fertility debate again

The moon observed in visible light, topography and the GRAIL gravity gradients

...and it wasn't caused by an asteroid crash, as first thought

Life and Style
food and drink

Savoury patisserie is a thing now

Researchers say a diet of fatty foods could impede smell abilities
scienceMeasuring the sense may predict a person's lifespan
ebooksAn unforgettable anthology of contemporary reportage
footballArsenal 4 Galatasaray 1: Wenger celebrates 18th anniversary in style

Meet the primary school where every day is National Poetry Day

Gillian Anderson was paid less than her male co-star David Duchovny for three years while she was in the The X-Files until she protested and was given the same salary

Gillian Anderson lays into gender disparity in Hollywood

peopleStella McCartney apologises over controversial Instagram picture
Life and Style
Laid bare: the Good2Go app ensures people have a chance to make their intentions clear about having sex
techCould Good2Go end disputes about sexual consent - without being a passion-killer?
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Italian couples fake UK divorce scam on an ‘industrial scale’

Welcome to Maidenhead, the divorce capital of... Italy

A look at the the legal tourists who exploited our liberal dissolution rules
Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

The vintage series has often been criticised for racial stereotyping
An app for the amorous: Could Good2Go end disputes about sexual consent - without being a passion-killer?

An app for the amorous

Could Good2Go end disputes about sexual consent - without being a passion-killer?
Llansanffraid is now Llansantffraid. Welsh town changes its name, but can you spot the difference?

Llansanffraid is now Llansantffraid

Welsh town changes its name, but can you spot the difference?
Charlotte Riley: At the peak of her powers

Charlotte Riley: At the peak of her powers

After a few early missteps with Chekhov, her acting career has taken her to Hollywood. Next up is a role in the BBC’s gangster drama ‘Peaky Blinders’
She's having a laugh: Britain's female comedians have never had it so good

She's having a laugh

Britain's female comedians have never had it so good, says stand-up Natalie Haynes
Sistine Chapel to ‘sing’ with new LED lights designed to bring Michelangelo’s masterpiece out of the shadows

Let there be light

Sistine Chapel to ‘sing’ with new LEDs designed to bring Michelangelo’s masterpiece out of the shadows
Great British Bake Off, semi-final, review: Richard remains the baker to beat

Tensions rise in Bake Off's pastry week

Richard remains the baker to beat as Chetna begins to flake
Paris Fashion Week, spring/summer 2015: Time travel fashion at Louis Vuitton in Paris

A look to the future

It's time travel fashion at Louis Vuitton in Paris
The 10 best bedspreads

The 10 best bedspreads

Before you up the tog count on your duvet, add an extra layer and a room-changing piece to your bed this autumn
Arsenal vs Galatasaray: Five things we learnt from the Emirates

Arsenal vs Galatasaray

Five things we learnt from the Gunners' Champions League victory at the Emirates
Stuart Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

This deal gives England a head-start to prepare for 2019 World Cup, says Chris Hewett
Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?