Market report: Tuesday close

SIR Richard Branson's Virgin Mobile, and Typhoo tea and Branston pickle maker Premier Foods, have slashed the price of their flotations.

Now dealers say that e2v Technologies, a maker of hi-tech equipment for use in the medical, science, aerospace and defence sectors, has followed suit.

The move is said to reflect the lack of appetite by investors for new issues.

Trading got under way today on a when-issued basis in e2v Technologies after being offered at 155p, at which it was valued at £86.7m. The shares opened at 163p.

Word is the company's adviser ABN Amro had originally been looking to place them with institutions at around 170p but was forced to scale down the price to get the issue away. The company refused to disclose the level of subscription, but of the 49.3m shares offered, 30.3m were being sold by existing shareholders, including lead investor, venture capitalist 3i.

But investors gave a better reception to a clutch of smaller issues making their debut on Aim, including Hamworthy, the marine handling systems specialist for the oil and gas industry. Its broker Collins Stewart placed 37m shares with institutions at 109p and said the issue had been six times oversubscribed. It traded at 129 1/2p. It was also first day of dealings on the junior market for Blueheath, the convenience stores grocery wholesaler, following a placing by broker Evolution Beeson Gregory of 15.2m shares at 121p.

It opened at 124 1/2p before touching a peak of 135p. Oil and gas explorer Meridian Petroleum also made its bow on Aim after a placing of six million shares by broker WH Ireland at 30p. It opened at 32 1/2p before touching 36p.

Share prices generally rallied from an opening fall. The FTSE 100 was up 18.3 points at 4339.4.

Vague talk of a 400p-a-share bid bolstered construction group Amec 23p, or almost 9%, to 293p on turnover of 4.5m shares. But Amec says it has not received any approaches. National Grid Transco rose 1/4p to 436p as a line of 14m shares went through at 434 1/2p.

Shares started trading in Group 4 Securicor following completion of the merger between Securicor and Group 4 Falck. The enlarged company started life at 125p. Morgan Stanley has a target of 140p.

Shire Pharmaceuticals rose 9p to 445p despite facing a major setback as US regulators delayed the approval of its new drug to treat severe kidney disease. The US Food and Drug Administration has extended by 90 days the date it can give approval for Fosrenol. Analysts expect the drug to achieve annual sales of up to $200m (£107m) by 2008.

Hilton slipped 1/2p to 251 1/4p. The hotels and betting group has been upgraded from hold to buy by French broker SocGen Securities following a recent meeting with the company.

US securities house Morgan Grenfell has begun covering United Business Media, up 2 1/4p at 461 1/2p, with an overweight rating and 550p target.

The US broker reckons the publishing group looks cheap compared with its rival despite what it called its superior growth prospects.

Morgan Grenfell also argued that the longawaited revival in UBM's hi-tech advertising business, CMP, is under way.