Rumours put new price on Walters

INDUSTRY gossip that headhunter

The share price has recovered strongly from September's blip below £1, caused by the board's warning that business continued to suffer from the severe weakness in financial services markets and that trading conditions remain difficult.

Peter Webb's Unicorn Asset Management has since been a big buyer, raising its stake to 15.2%. Webb's Eaglet Trust also owns 9.4%. But the constant activity of a mystery buyer has prompted growing speculation that perhaps someone has been quietly stakebuilding before making a corporate move. But who?

Dealers pointed the finger yesterday at Hays, 4 1/4p better at 130 1/2p. The restructuring group has raised a further £102.4m by selling its logistics business to Platinum Equity, swelling its coffers to £440m. It plans to dispose of its mail business early next year to concentrate on its core recruitment service. Robert Walters is well within its price range.

Whitehead Mann gained 6p to 306p despite director Clive Mann's sale of 500,000 shares at 300p. Dealers were relieved to hear it was to satisfy institutional demand.

The Footsie raced ahead to a 15-month peak of 4423.6 before elevenses following news that UK gross domestic product rose a better than expected 0.7% in the third quarter. It later succumbed to profittaking and a weaker opening on Wall Street. The close was 18.4 points lower at 4370.3.

The Dow Jones lost an early 30-point gain to trade 57 points lower as traders trousered some profits ahead of today's Thanksgiving holiday.

Buyers held off despite a feast of mostly stronger than expected economic data, including news that demand for US-made durable goods in October rose at the fastest rate in more than a year.

Buy-to-let mortgage expert Paragon advanced 8p to 313p. Full-year pre-tax profits jumped 12.8% to £51.9m, while the management is extremely upbeat on prospects following its £18.8m summer acquisition of Britannic Money.

Lloyd's market insurer Chaucer rose 1 1/4p to 45p on hefty turnover of 3.4m amid rumours of an imminent bid from either majority shareholder BRIT Insurance (1p dearer at 74p) or Hiscox (unchanged at 141p).

Dog owners will be pleased to hear that biotech firm Phytopharm has reached an agreement with Genitrix Ltd to launch its canine osteoarthritis product, aimed at treating dogs with intolerance to the usually available products. Evolution remains bullish and the close was 16p higher at 216p.

Aim-quoted Madisons Coffee firmed 1/4p to 5 1/4p after completing the £2.2m sale of its coffee operations to the Out of Town Group. It can now focus on its growing Richoux restaurant business.

Workspace provider Bizspace, in which veteran entrepreneur Jack Petchey has a 5% shareholding, edged up 1/2p to 32 1/2p. It has exchanged contracts to acquire seven managed workspace centres for £15.8m. The properties produce net income of more than £1.6m.

Fortune Oil added 5/8p at 3 3/8p after announcing the completion of its natural gas pipeline joint venture with Beijing Huayou Gas Corporation.

A warning that the anticipated second-half operating loss will be of a similar magnitude to that incurred in the first half left high-tech security minnow Screen 2 1/4p down at 8 1/4p.