Market report: Friday close

INVESTORS today had their first chance to react to

The deal was unveiled last night after 11th-hour negotiations. BAE's 320p-a-share cash offer blew General Dynamics' 280p bid out of the water just as the American aerospace company was scenting victory.

Five hedge funds holding a total of 16.2% in Alvis have promised to sell their stakes to BAE, whose shares fell 1 1/2p to 211 1/2p. Alvis, which last night closed down 1/2p at 276 1/2p, today jumped 39 1/2p to 316p.

Share prices remained broadly neutral overall, with conflicting performances from Asia and the US painting a confusing picture for investors today. Hong Kong's Hang Seng index closed up 92.71 points at 12,022. while in Tokyo the Nikkei Stock Average finished 101 points ahead at 11,128.05.

A fall in oil prices could not calm nerves in the US after stronger than expected non-farm payrolls cemented expectations that the Fed will put interest rates up at the end of June. The FTSE 100 fell on opening but fought back to 4454.40, up 19 points.

BSkyB bounced 13p higher to 597 1/2p after analysts met with managing director Dawn Airey. Hotels group Hilton was 2 1/2p higher at 269 3/4p after being upgraded to overweight by Morgan Stanley. The broker increased its target price to 300p after analysts lifted estimates for 2004 and 2005 earnings by 14% and 13% respectively. It reckons the hotels group is trading at a 25% discount to rivals such as Accor and InterContinental.

WPP jumped 12 1/2p to 552p. Dealers said the market was factoring in an increased advertising spend during the coming US Presidential election and the Olympic Games.

The brewers will not leave China alone. Just as SABMiller, up 6 1/2p at 676 1/2p, pulled out of the race to buy the Harbin brewery, Scottish & Newcastle, up 3 1/2p at 430 1/4p, today took a 19.5% stake in Chongqing Brewery, the country's sixth-largest beer maker, for £35m.

Centrica warmed 1p to 219p after a positive note from Warburg. Tomkins was down 1 1/4p at 263 1/2p after JP Morgan repeated its underweight stance on the stock.

Quintain Estates, up 7 3/4p at 416 3/4p, stood out among the mid-cap companies after finally being granted outline planning consent to redevelop 42 acres of brownfield land surrounding Wembley Stadium.

Bid rumours continue to swirl round two mid-cap retailers. MFI was 3 1/4p better at 159 1/4p and Big Food Group was up 2 3/4p at 109p.

Retail Decisions rose 1 1/2p to 17 1/4p as internet travel agent Travelocity chose its payment-processing services for all its e-commerce business.

Office Services group Wigmore was facing meltdown despite today's announcement of a refinancing deal and share subscription by Evolution Beeson Gregory. The shares resumed trading after last week's suspension and shed 1.3p to 0.475p, a fall of 73%.

Glamorous it may be, but investors were walking out of Civilian Content, down 1p at 9.62p. The film and finance company reported a pre-tax loss of £1.18m against a profit of £103,000 the previous year. Civilian, which was behind the Stephen Fry film Bright Young Things, has three new films under way.

Its biggest shareholder, Fandango, has put in more money and the international film finance and sales business has been restructured.

A new joint venture with SureFire has secured £1.2m of funds for further development.