Shout goes up for Singer on predator hopes

BRITISH merchant banks have dropped like flies over the years, swallowed by hungry foreign predators. It could happen again because

Iceland's biggest bank increased its stake to 9.6% and is tipped to launch a full-scale offer soon. In anticipation of mouth-watering corporate activity, punters chased Singer to 212 3/4p before closing 2 1/4p better at 208p.

Kaupthing is keen to expand its presence in the UK after acquiring BMY Corporate Finance in February. And it is no passive investor, having made 11 acquisitions over the past three years.

Monday's sale by S&F of the lion's share (26.2%) of its 30.8% stake in Swedish broker Carnegie - which raised £97.5m - has cleared the way for the Icelanders to pounce. Analysts believe it would be a perfect fit and expect the take-out price to be about 260p a share.

Quoted stockbroker Evolution, which bought Beeson Gregory last year, firmed 2 1/2p to a year's high of 97 1/2p. It is looking at Panmure, the London broker put up for sale by German bank WestLB, but will not pay a silly price.

Battening down the hatches ahead of Thursday's expected rise in UK interest rates, fund managers watched the Footsie lose an early 20-point gain to finish 2.3 points easier at 4330.3. Profit-taking after Monday's 17-month peak left Wall Street 38 points lower in the early stages.

Sterling eased to $1.68, while the euro edged up to 68.3p and $1.150.

Convinced that Royal Bank of Scotland is on the acquisition trail, buyers left the stock 38p higher at 1584p. German private bank Falke is now said to be a target.

Unsettled by the escalating mutual funds trading scandal in America, Anglo-American fund manager Amvescap fell 22p to 443 1/2p. Lawrence Lasser, chief executive of Putnam, one of the biggest US mutual funds, was sacked after 33 years with the company.

Nervous selling ahead of next Thursday's interim results left directories group Yell off 5 3/4p at 276 1/2p.

Deemed to be oversold on dearer money fears, housebuilders rallied. Bellway bounced 21p to 649p and Berkeley Group 26p to 811p. Builders merchant Travis Perkins rose 37p to 1234p after Smith Barney upgraded from hold to buy. The broker says that in the absence of a severe correction in UK house prices, the trading outlook appears robust.

Eyebrows were raised when a sale of 15.3m Premier Farnell shares went through on the ticker at 250p. At the close the electronics distributor shares were 5p easier at 254p. One fund manager said: 'Perhaps tomorrow's interim results from Electrocomponents (8p off at 345p) will disappoint and an investor bailed out knowing the sector could take a knock.'

Transport giant First Group edged up 1 3/4p to 303 1/4p after the Strategic Rail Authority named it as preferred bidder for the Thames Trains franchise in southern England. Reflecting disappointment at losing out, competitor Go-Ahead reversed 29 1/2p to 1028p.

Dealings in cash shell Hawthorn Holdings were suspended at 12p, up 3p, after announcing it has held preliminary reverse takeover discussions with a third party. The news also stimulated Akaei, another shell company, and the close was 5p better at 21p.

Lok 'n Store, the self-storage company, soared 19p to 97 1/2p on a bid approach.

Software supplier Corpora gained 5p to 40p after signing an agreement to provide its Jump! technology to G&H International for a US law enforcement community.

Intellectual property group Chorion advanced 12 1/2p to 194p. Two new educational programmes for children featuring Enid Blyton's character Noddy have been a global success. Developer Chorion has earned more than £800,000 in the first six months of the current year and forecasts further significant revenues.

Gold miner Minmet firmed 1/4p to 5 1/4p after signing a £2.1m agreement at its Barsele project in northern Sweden with North American Gold.