Thrills and spills with Sportingbet

A ROADSHOW to reassure investment institutions about progress was nearly derailed when online gaming group

The company faces legal action by the state of New Jersey for allegedly accepting illegal bets. Punters heard it was all getting serious and drove the price down 13p to 110p at one stage

Chief executive Nigel Payne said: 'The rumour was false. The case seems to be going away. We have heard nothing recently from New Jersey and have no concerns about our legal position.' The price closed at 116p, still down 7p, as 1m shares changed hands.

Sportingbet is the world's largest online gambling operator. It should do well out of this summer's World Cup in Japan and South Korea. Its broker Dresdner Kleinwort Wasserstein forecasts full-year profits of £7.5m.

The FTSE 100 fell for the third consecutive session, ending 19.6 points off at 5073.8, as confidence, reeling from the Enron scandal, was further undermined by the fraud at Allied Irish Banks.

Losses were widespread across the banks, with Abbey National 29p easier at 1032p, Barclays 35p at 2139p, Royal Bank of Scotland 35p at 1757p, and Lloyds TSB 10p at 726 1/2p. Better-than-expected news from networking giant Cisco helped Wall Street recover ground after a shaky opening. Sterling closed at $1.4136, the euro at 61.4p.

Rolf Stahel, chief executive of Shire Pharmaceuticals, is 'aggressively' seeking deals. The market thought it had identified the target in Irish group Elan, vulnerable after a profits warning and accounting controversies that have decimated its price. Shire, helped by an upgrade from UBS Warburg, gained 5p at 761p, while Elan, which specialises in dermatology products, bounced 102p to 1097 1/2p.

Worries that Rolls-Royce may need a rights issue to bolster its balance sheet left it 7 1/4p weaker at 148p. Goldman Sachs sees the price hitting 100p.

BT unveils third- quarter figures today, giving the City the first chance to meet new chief executive Ben Verwaayen. Broker SG says the shares are worth 299p but they fell 4p to 227p.

Forth Ports gained 17p at 732p on planning approval for a £600m redevelopment of the western harbour at Edinburgh, providing 3,000 apartments and office space.

Be wary of High Street retailers, warned Dresdner Kleinwort Wasserstein. It believes conditions will get tougher over the next three years. It is cautious on Marks & Spencer, setting a target price of 330p against 367p, down 3p, but optimistic about Matalan, 5 3/4p easier at 379 3/4p, which it thinks should reach 425p.

SurfControl, which installs software to prevent employees downloading porn, shed 30p at 585p on a profit downgrade by UBS Warburg. The broker is sticking to a target price of 650p but lowered earnings estimates to reflect a tax charge now that profitability is improving.

Builder Barratt Developments jumped 15p to a new high of 447p, helped by figures showing strong growth in house prices. Wilson Bowden advanced 16p to 871 1/2p. The sector is firm, with strong bookings underpinned by low interest rates.

Monotub collapsed from 15p to 8 1/2p - it was 432p last year - on growing concerns over its future following major problems with its new Titan washing machine. One line of stock unloaded by an institution triggered the fall.

Fading hopes of winning the Premiership left Leeds United at a new low of 7 1/2p. The club is now valued at a cheap £27m, half its level a year ago. Manchester United shed 2 3/4p at 137 1/4p after gossip that Irish tycoons John Magnier and JP McManus, who own 8.6%, have no plans to bid.

Sports Resource, the Aim-listed sports management group created by former Leeds chairman Chris Akers, fell 13p to 47 1/2p on a profit warning. It is also owed £250,000 from the collapse of Prost Grand Prix.

Winchester Entertainment lost a further 5p to close at 46 1/2p following its shock profit warning, just two weeks after chief executive Gary Smith sold shares worth £592,000 at 148p each. He will have to mend a few fences with investors.