Market report: Weds close

THE bears had their claws into

The industrial gases group says it will appeal against the verdict of an Illinois court in a case brought by welders, who claim their health was damaged by fumes. The judgment, against three defendants including BOC, could result in damages running toms of dollars.

Brokers fear it could open the floodgates to many more claims costing the group between $35bn and $70bn (£20.6bn and £41bn).

BOC will argue the verdict runs contrary to Illinois law and that evidence has not established a link between the fumes and idiopathic Parkinson's disease. Broker HSBC Securities unnerved the market in January by alleging compensation claims against BOC could run as high as £41 billion.

More than 22m BOC shares changed hands, one seller dumping 467,000 at 832p.

Share prices generally traded in a narrow range. Yesterday's euphoria among US investors over the Federal Reserve's decision to peg interest rates boiled over this afternoon with the Dow making a nervous start.

The FTSE 100 index fell 7.20 to 4265.70.

Boots raced up 25 1/2p to a year's high of 703p, US securities house Lehman Brothers repeating its overweight recommendation and 750p target price. New chief executive Richard Baker has started making his presence felt with yesterday's reshuffle of senior management.

A two-way pull developed in BAT, 10p off at 710p, after Monday's US link-up with rival RJ Reynolds. US securities house Morgan Stanley has raised its target price from 775p to 820p, but broker UBS remains neutral and has raised its target from 585p to 620p - way below the ruling market price.

Legendary share tipster Jim Slater and his son Mark are moving some of their family fortune into gold and precious metals. Their stock market vehicle Galahad Capital has been reversed into by Shambala Gold, a company in which they have a substantial interest, as part of a £19m deal that gives them access to mines in Alaska and Greenland. Galahad rose 3.88p to 14.125p.

The move signals a radical change in strategy at Galahad, which had focused previously on punting in undervalued technology companies. The Slaters believe the precious metals industry is set for a bright future due to soaring demand and tight supply. Its shareholders include Lord Wolfson of Sunningdale, whose family founded the GUS retailing empire, and Sir Gordon Brunton, involved with the early North Sea oil industry.

Chocolate-maker Thorntons, in bid talks with a venture capitalist, says it has received other approaches. The price firmed 3p to 160 1/2p, broker Seymour Pierce describing Thorntons as a speculative buy.

Cash-shell Dataflex was suspended at
15 1/4p ahead of full- year results. The company plans to return cash, worth
16 1/2p a share, in January and possibly a further 1p a share once it is wound up.

Telecommunications Group, which used to be Roxspur Group, began trading on AIM after buying Cellular Holdings. The shares opened at 6.12p and traded at 7p.