STOCKS NEWS UK-National Express accelerates on bid approach

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12:55GMT 29Jun2009-National Express accelerates on bid approach

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Shares in National Express (NEX.L) rise 5 percent after the British bus and rail operator rejects an all share offer from its larger rival FirstGroup (FGP.L).

The takeover interest pushes National Express' shares to a two week high of 304.5 pence. However, National Express says it would prefer to focus on strengthening the group and would not consider the approach.

"With the exception of rail, National Express' assets are quite attractive, although there may be some competition issues in North America and possibly the UK. If it remains independent, in our view it will need to raise a significant amount of new equity," says Panmure Gordon analyst Gert Zonneveld, who maintains a "hold" recommendation on the group.

For more, click on [ID:nLT646700 ]

Reuters messaging rm://rhysl.jones.reuters.com@reuters.net

11:19GMT 29Jun2009-UK small caps gain 0.1 pct midday

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The FTSE Small Cap index .FTSC gains 0.1 percent in midday trade, underperforming both the blue chips .FTSE and the midcaps .FTMC, which rise 0.5 percent and 0.7 percent, respectively.

Lookers (LOOK.L) adds 4.6 percent as Panmure Gordon upgrades its recommendation on the car dealer to "buy" from "hold" following the firm's recent 80.7 million pounds placing. [ID:nLT110844]