Builders' bid buzz falls flat

PROFESSIONAL punters have burnt their fingers in bricks and mortar this year. They were left to lick their wounds when takeover approaches at housebuilders Berkeley Group and then McCarthy & Stone collapsed after the share prices of both had gone through the roof.

Punters were therefore not too carried away on Monday when rumours did the rounds that Crest Nicholson's days of independence are numbered.

Shares of the Surrey-based housebuilder touched 260 1/2p before closing 8 1/2p higher at 257p. One fund manager was prepared to lock a few away because in his words: 'Crest is substantially undervalued at its current price and must look indecently attractive to one of the bigger sector players.'

Possible bidders include Taylor Woodrow, 4p cheaper at 196p and Bellway, 1 1/2p better at 607 1/2p.

Crest recently announced a 32% leap in first-half profits after selling 833 homes during the six months at an average £253,300. June was a record month and analysts forecast full-year profits of £72m, from £63m.

Growing concern that Prime Minister Tony Blair could be forced to resign over the David Kelly affair and an early fall on Wall Street dragged the FTSE 100 28.9 points lower to 4044.3. Dealers took profits in New York following disappointing second-quarter earnings statements from Merck and Lexmark.

Sterling rallied to $1.6012 at the close, while the euro traded at 70.8p and $1.1345.

The lightning strike by its check-in and baggage handling staff at Heathrow cost British Airways an estimated £20m revenue and jeopardised its chances of rejoining the Footsie elite in September. BA was sold down to 168p before closing 3 3/4p easier at 171p. Dealers now predict a long period of uncertainty that could see more investors take profits after the strong run since March.

Discount airline easyJet initially benefited from BA's woes and touched 247p ahead of today's trading statement. Profit-taking left a close of 238 1/4p, down 2 1/2p.

Manchester United, the world's richest football club, rose 5p to 160p, Buying reflected a revival of bid rumours and relief that manager Sir Alex Ferguson will not have to fork out £23m for Brazilian ace Ronaldinho.

Talk that chief executive Peter Johnson has a big acquisition under his bonnet lifted car dealer Inchcape a further 30p to a year's high of 1060p. Punch Taverns frothed 7 1/4p to 290p on the appointment of Adrian Fawcett as chief operating officer. He was corporate vice president of Belgian brewer Interbrew.

SkyePharma closed a sickly 4 1/4p lower at 65p. Investors ran for the exit after the drugs group said it is likely to post a greater-than-expected first-half loss after failing to conclude several important deals. It should report a profit in the full year.

Aim-listed Digital Animations, the interactive computer games company, jumped 3p to 20p after agreeing to return £3m to shareholders via a tender offer at 21p a share. IFTE eased 1p to 38 1/2p after recommending a 39p a share cash offer from Kidde ( 1/4p off at 88 3/4p) which values the fire training group at £10.1m. In the year to April IFTE lost £1.9m before tax, from a profit of £1.8m last time.

Six new institutional investors drilled in at Aussie oil explorer Hardman Resources, acquiring stock in a placing of 42.7m shares at 22p. The close was 1/4p easier at 23p. Ingenta, the online professional and academic research group, cheapened 1/2p to 10 3/4p after raising £475,000 in a placing of 5m shares at 9 1/2p. Software group Jasmin lost 16p to 116 1/2p after disappointing annual results.