Market report: Friday close

SHARES in

That would leave the American tycoon with the option of going directly to shareholders without his approach being classed as hostile.

Overall, the market was in buoyant mood, the FTSE 100 index adding 29.7 at 4849.3 despite a poor start for the Dow Dow Jones Industrial Average in New York, which was off 46 points by mid-morning.

One of the few stocks in the top flight to fall was Shire Pharmaceuticals, amid a mixed reaction to its $1.6bn (£838m) purchase of US biotech Transkaryotic Therapies. CSFB downgraded Shire to neutral from outperform, helping push the shares 20½p lower to 539p. Code Securities also reduced the stock to hold from buy.

But other brokers were upbeat. Seymour Pierce initiated coverage with a buy rating and a price target of 690p. Numis Securities, with a target of 630p, said add, Merrill Lynch retained its buy rating, while WestLB upgraded the drugs company to neutral, raising its price target to 600p from 550p.

Retailers were in the spotlight as Goldman Sachs lifted its rating on clothing outfit Next from in-line to outperform, arguing that the stock's growth prospects outshine the sector in general. The shares rose 14p to 1531p.

Meanwhile, Lehman Brothers cut its target on Kingfisher to 260p from 275p. The broker does not expect the DIY retailer to trade at a premium to the sector in the present harsh business environment. UBS, keeping its neutral rating, also reduced its target on the stock from 320p to 300p. Kingfisher edged up 1½p to 274¾p.

MFI was off 1¾p at 112½p as the merger premium that has been lending the stock support threatened to evaporate. UBS has slashed its price target to 105p from 130p, lowering its rating to reduce from neutral. Market sources interpreted that as a sign the broker has abandoned hope of a bid emerging.

Shares in Blavod Extreme Spirits- maker of black vodka for trendy bars and nightclubs, rose 1¼p to 17¾p. The firm has seen a steep rise in case shipments for its products.

Dairy company Arla Foods, has named its new £350,000-a-year chief executive. Tim Smith is currently number two in the company and is seen as a safe pair of hands, having spent his entire career in the industry. He takes over from Neil Davidson, who retires in June. The shares were tweaked ¼p higher at 64¼p.

Alternative Investment Market-listed Reefton Mining slid after chief executive Simon Gilbert resigned. Reefton said Gilbert will stay on in a consultancy role but the shares were off 0.87p at 3.25p. Medical-equipment supplier Surgical Innovations, another Aim stock, was up 0.25p at 2.25p on the back of better-than-expected full-year results, a confident outlook statement and a strong order book.

Financial spread betting company IG Group is due to see its first day of trading next Thursday following its float, and institutions are valuing the firm at about 130p a share, toward the top end of the indicative range of 112p-139p, says a market source.

At 130p, it would have an implied market value of £409m. The source said the book is well-covered, with healthy orders from Britain and America.