Market report: Monday close

DEALERS were out in force today to buy

The shares moved ahead strongly from the 141p at which Granada closed on Friday with a rise of 7p, or 5%, to 148p. UBS initiated coverage by setting a target of 161p on the back of cost savings and advertising revenue from any economic recovery.

Goldman Sachs and CSFB both offered 'overweight' advice. Volume was running at more than 38 million following huge trading in Carlton and Granada shares last week.

Bookham Technology moved up to the FTSE 250 to replace Carlton. Its shares responded with a 4 1/2p fall to 169p. Invensys rose 3 1/2p to 25 1/2p ahead of a well-flagged £500 million rights issue due later this week. The rights will save Rick Haythornthwaite from the embarrassment of not being able to make a debt repayment of £400 million in June when an £825 million revolving credit facility falls due.

Haythornthwaite is finding it very much a buyers' market in the engineering sector and has failed to sell off businesses such as Appliance Controls, Powerware, which makes uninterruptible power supplies, and its wind-power businesses, all part of a £1.8 billion disposals programme. There is also a £700 million pensions hole to be filled. Hope for its shareholders could come in the form of a bid from German giant Siemens.

The odds on an interest rate rise on Thursday improved following good UK manufacturing purchasing managers index data. The market could absorb a quarter-point rise. Wall Street opened lower and London shares fell back in sympathy, with the FTSE 100 index ending 9.3 points down at 4381.40.

Traders have been predicting since the start of the year that Danish security firm Group 4 Falck will make a bid for Securicor. The speculation increased as security surrounding talks between Securicor chief executive Nick Buckles and his opposite number Lars Norby Johansen appeared to be non-existent. Securicor today said it was in nil premium talks with the Danes. Its shares rose 3 1/2p to 115 1/2p with dealers talking of a 121p bid. Another bid favourite, tobacco group Gallaher, enjoyed a Deutsche Bank buy note setting a target price of 650p as its shares climbed 6 1/2p to 610 1/2p.

JP Morgan liked the look of Land Securities' Trillium unit, which provides repair and cleaning services for offices and shops. The Americans believe that Trillium is worth up to 250p a share as a result of winning further contracts. This is not reflected in Land Securities' share price, which Morgan has targeted at 1230p. The shares today added 20 1/2p at 1021 1/2p.

Celltech has attracted interest from 18 companies for its rheumatoid arthritis CDP 870 drug, which Pfizer returned to it last year. Phase III results are expected in the first half of this year, so any deal will be in the third or fourth quarter. Celltech shares were up 7 1/2p at 398p.

The festering row at Manchester United saw its shares run back 2 1/2p to 264 1/2p despite gossip that American football tycoon Malcolm Glazer may launch a bid.

Business support group Peterhouse said it was in merger talks, and its shares climbed 22 1/2p to 197p.