Exel poised for Tibbett bid

PUNTERS hitched a ride at logistics group

The close was 10p higher at 490p as dealers responded to gossip that Exel is ready to go hostile after having a 'friendly' informal approach rejected.

Tibbetts looks vulnerable after an annus horribilis in 2003. The shares plummeted to a low of 355p after a turbulent 12 months in its two largest markets.

A profits meltdown in the Americas, increased competition as well as losses of big contracts in the UK sent investors running for the exit.

A long-standing lucrative contract with Marks & Spencer was lost as was one with Canadian food retailer Kroger and Safeway Inc.

Tibbetts experienced serious restructuring problems in Mexico which led to the sacking in November of Mike Sprague, the head of its North American operations.

Chairman and 4.9% shareholder John Harvey steps down at the end of the year. Just over four years ago he rejected several bid approaches when Tibbetts were changing hands at 790p.

Shareholders led by Schroders (8.5%) and Invesco (7.6%) have watched the stock move south ever since.

Exel, formed by the merger of NFC and Ocean in 2000, displaced Tibbetts to be Marks & Sparks' lead service provider.

Valued at more than £2bn, it could swallow Tibbetts with loose change. It closed 15p down at 705 1/2p.

Markets have been braced for a 0.25% rise in US interest rates to 1.25% for months. But fears the Federal Reserve may be more aggressive and lift rates by 0.5% should a CPI report today show faster US inflation prompted widespread falls.

The Footsie slumped 50.8 points to 4433.2 in subdued trading, while Wall Street fell 85 points in early trading. Sterling edged up to $1.8148, while the euro held at 66.5p and $1.2071.

Heavy building materials group Hanson shed 10 1/2p to 412p on nervous selling ahead of the interim trading statement on June 24.

Scottish Radio jumped 24 1/2p to 899 1/2p as buyers nibbled away in the hope that 27.8% shareholder and publishing group Emap (9p easier at 735 1/2p), will soon bid for the rest. It bought its stake from Virgin Radio's owner SMG in January for £90.5m, or 930p per share.

For the umpteenth time in recent months, punters piled into retail banking firm Egg amid speculation the Prudential had finally found a buyer for its 79.3% stake.

Egg closed 4 1/4p better at 159 1/4p but the silence from the Pru (5p off at 451p) was still deafening.

Talk of a pending cautious circular left Computacenter 30p down at 380p.

Workspace soared 112 1/2p to 1735p after the office space rental group reported much better than expected net asset value growth - up 22% at 1843p - compared to analysts' forecasts of 16%.

The group lifted pretax profits from £13.4m to £15.1m and believes occupancy should improve from its current 88% level to 90% during the year.

Aim-quoted CPL Resources, the IT recruitment company, advanced 9p to 57 1/2p after forecasting annual pre-tax profits will be substantially ahead of current market expectations.

Overnet Data gained 5p to 117 1/2p after the AGM approved the reverse takeover and change of name to FuturaGene. FuturaGene has patented a process that allows crops to be irrigated by sea water.

ID Data firmed 3/4p to 5 7/8p after winning an exclusive contract with Citibank to design, develop and personalise the bank's Chip and Pin cards for the UK markets to help reduce the risk of fraud.

Plastics technology group 3DM Worldwide declined 18 1/2p to 71 1/2p despite announcing narrowing full-year pre-tax losses of £1.44m, down from £8.99m.