STOCKS NEWS UK-PartyGaming falls as co-founder cuts stake
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08:48GMT 20Oct2009-PartyGaming falls as co-founder cuts stake
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Shares in PartyGaming fall by 11 percent to 252 pence after Indian billionaire Anurag Dikshit says he intends to sell two-thirds of his 28 percent stake in the world's biggest online gambling firm via an accelerated offering to institutional shareholders.
Nick Batram, an analyst at KBC Peel Hunt, expects the placing to be at a discount to Monday's closing price of 284.5 pence.
"My thoughts are probably somewhere between 250 and 260. I'm hearing talk the range is 255 to 275. If they get it towards the top end of that range that would suggest pretty good demand," he says.
Batram sees the move as positive for the company as it will increase its free float and bring more institutional investors on board.
For more see [ID:nLK706832].
Reuters messaging rm://matthew.scuffham.reuters.com@reuters.net
08:47GMT 20Oct2009-Greggs weak after update, Altium cut
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Shares in Greggs (GRG.L) shed 6.3 percent as the high street baker's in-line trading update fails to inspire, with Altium Securities prompted to cut its rating for the stock to "sell" from "hold".
Greggs, which sells sausage rolls, pasties, sandwiches, cakes and bread to over six million customers a week from about 1,400 outlets, says sales at stores open at least a year increased 0.2 percent in the 16 weeks to Oct. 17.
Altium says in a note that Greggs's like-for-like sales growth in the first 16 weeks of H2 is lower than it has been modelling, although, on the other hand, the contribution from new space is higher than expected.
The broker says cost inflation is easing for Greggs, which perhaps explains how its pretax profits can remain on track despite lower than expected revenues.
Altium presumes there will be little change to short-term forecasts for Greggs after the update. It is leaving its target price unchanged at 405 pence but it has cut its rating as it feels the shares "appear slightly over-bought".
For more double click on [ID:nLJ711094]
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
07:51GMT 20Oct2009-UK small caps gain 0.2 pct early
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The FTSE Small Cap index .FTSC is up 0.2 percent in early deals, outperforming both the blue chips .FTSE and the mid caps .FTMC which are down 0.2 percent and 0.1 percent, respectively.
Petroceltic (PCI.I) jumps 10.3 percent higher after the oil and gas explorer issues an update on its operations in Algeria showing substabtially increased flows rates from its AT-1 well test. For more, double click on [ID:nRnsT0484B]
Hampson Industries (HAMP.L) gains 3.9 percent after the engineer says its aerospace tooling division received a new contract worth $28 million for the design and manufacture of precision tools for composite airframe structures. For more, double click on [ID:nBNG521769]
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
07:51GMT 20Oct2009-Autonomy falls on weaker gross margin
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Shares in Autonomy Corp (AUTN.L) fall 7.5 percent after the search software company reports Q3 results, with gross margin falling to 86 percent in the third quarter from 92 percent a year earlier, due to costs associated with its new product launch.
Panmure Gordon analyst George O'Connor says the shares usually fall on results, and with the group coming in at the bottom end of expectations, this quarter is no exception.
"Today's a day for the bears," he says. "EPS was shy of our expectations, a casualty of the gross margin which at 86 percent was lower than we anticipated."
O'Connor, who rates the shares a "buy", reduces his full-year EPS forecast to $0.977 from $1.005 and target price to 1,790 pence from 1,868 pence.
For more, click on [ID:nLK697288]
Reuters messaging rm://paul.sandle.thomsonreuters.com@reuters.net
07:46GMT 20Oct2009-Sainsbury up on renewed Qatari bid talk
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Sainsbury (SBRY.L) leads the blue-chip gainers, up 2.6 percent, as talk resurfaces that the Qatari Investment Authority is interested in making an offer for the supermarket in the wake of a sale of 379 million Barclays (BARC.L) shares worth $2.1 billion.
Sainsbury shares gained as much as 20 percent on Thursday on talk Qatar's sovereign wealth fund was planning a renewed offer for the British grocer after a previous bid failed in 2007.
"After the bid speculation (for Sainsbury) last week, people are looking at the Barclays move and putting two and two together," says a trader based in Monaco.
"Talk of (Qatari's) dumping one to buy the other," a London-based trader says.
"We don't comment on rumour or speculation," a Sainsbury spokesman says. The QIA is not immediately available for comment.
Barclays shares are down 5.1 percent and feature among the biggest UK large cap losers.
Reuters Messaging rm://simon.falush@reuters.com@reuters.net
