Market report: Tuesday close

FORMER booze king Edgar Bronfman Jr could be about to hit a bum note with investors in music publisher

Brokers say the bid from Bronfman, who used to run distiller Seagram, is likely to fall short of the offer from EMI, which is only interested in the recorded music side. The music publishing business would be sold off separately and is reckoned to command a price tag of $1.2bn.

Brokers argue the merger between rivals Sony and Germany's Bertelsmann, announced earlier this month, means any move by EMI is likely to attract the attention of regulators on both sides of the Atlantic.

The wider market traded below its best levels. Still, the FTSE 100 index was up 20.30 at 4359.20 despite a nervous start to trading in New York.

Electrical retailer Dixons lost an early lead to trade 1 3/4p down at 132 3/4p after reporting a 1% rise in total underlying sales for the 28 weeks to 15 November, in line with management expectations.

Traders are focused on the run-up to Christmas and an imminent ruling on extended warranties. The group is gearing up for a strong festive season.

Lloyds TSB slid 3 1/4p to 396 3/4p. US broker Smith Barney has downgraded from buy to hold and cut its earnings estimate by 12% for next year and 15% for 2005, blaming the disposal of its New Zealand unit, poor trading and margin pressure.

Johnson Matthey fell 1p to 1032p following the issue of the platinum review. Deutsche Bank has set a target of 1126p.

A profits alert left logistics specialist Tibbett & Britten nursing a loss of 47 1/2p to 424p. The group says problems in its American arm will cost £5m in lost profits. Brokers had been forecasting pre-tax profits of almost £27m, up from £13m last time.

Brewer SABMiller was 1/2p flatter at 547 1/2p ahead of Thursday's interims. Broker UBS has downgraded from buy to neutral but raised its target from 545p to 580p.

Shire Pharmaceuticals lost 20 3/4p to 483 1/4p after learning US rival Impax Laboratories had developed a cheap generic version of its Attention Deficit Hyperactivity treatment, Adderall.

UBS is increasingly bearish about Cambridge Antibody Technology, off 34p at 439p, cutting it from neutral to reduce and lowering its target 30p to 410p. Celltech, off 10p to 350p, is still reeling at last week's move by partner Pfizer to halt clinical trials of CDP 870, its Crohn's disease and rheumatoid arthritis treatment.

Security printer De La Rue was 1 1/4p at 263 1/2p. Broker Merrill Lynch has upgraded from sell to neutral, saying the shares have fallen 11% since it turned seller in September. Interims are out next week and Merrill is looking for pre-tax profits of £18m, including £5m from the Iraq banknote order.

Oil industry services group Expro International dived 55p, or 20%, to 217 1/2p. Results for the year to March, will be 'materially below' market expectations.