Toad pubs could end up as Cannon fodder

WILL matters at struggling

A serial buyer and seller of pub chains, multi-millionaire Cannon obviously means business and wants to keep up the pressure on the beleaguered Eldridge Pope board, led by new chief executive Susan Barratt.

He made an unsolicited tender offer a few months ago for 19% at 165p a share, with the intention of raising his stake to a threatening 29.9%. It attracted modest acceptances of 2.18%. Industry sources believe an impatient Cannon could soon launch a hostile cash offer.

Over the past two years Eldridge Pope has seen three chief executives pass through its doors and rejected three takeover approaches. Its board called time on talks with Wolverhampton & Dudley, but CI Traders walked because it was unhappy about Eldridge's hefty pensions deficit and £15m debenture. Cannon's stakebuilding has always been seen as hostile and unwelcome.

Eldridge last month sold 23 of its pubs for £5.4m, but trading remains difficult. Half-year profits slumped to £120,000 from £1.9m and analysts forecast fullyear losses of up to £4m.

Mitchells & Butlers rose 4 1/2p to 240p in anticipation of sparkling results next Thursday.

UK dealers were left to their own devices because of Wall Street's closure for Thanksgiving Day. They certainly had little to get excited about. Up 20.1 points at the outset, the Footsie drifted for want of follow-through support to finish 9.2 points off at 4361.1. A survey showing that UK consumer confidence took a dive in November following the 0.25% increase in interest rates to 3.75% didn't help sentiment.

Sterling hit a new seven-year peak rising as high as £1.7155. The euro traded at 69.4p and $1.19.

A Goldman Sachs upgrade from 'underperform' to 'in-line' and continuing talk of a possible bid from Japan's NTT DoCoMo helped mobile phone group mmO2 buzz 3p higher to 75p.

Growing worries about pre-Christmas clothing sales following Austin Reed's (12 1/2p down at 136 1/2p) profit warning left Marks & Spencer 3 3/4p easier at 270 3/4p, Next 10p off at 1099p and Matalan 10 1/2p lower at 224 1/4p.

With the Red Devils safely into the lucrative last 16 stage of the European Champions League and with takeover rumours never far away, Manchester United scored a 6 1/4p gain to a year's high of 249p. Leeds United, in a completely different league and staring administration in the face, shed 0.13p more to 23/8p.

Vague bid talk lifted builder Marshalls 11 1/2p to 251p.

The London Stock Exchange lost 4 1/2p to 351 1/2p after agreeing to slash listing fees by an average of more than 25% to resolve the investigation by the OFT. The watchdog started a probe following price increases of up to 75% in April 2002 and during one of the worst bear markets in history.

Companies on the Aim small-cap market will pay an annual flat fee of £4,000 from April 1, 2004. Admission fees to Aim will also be £4,000, down from £5,125.

Vislink, the IT hardware group, firmed 1 1/2p to 21p after its Continental Microwave subsidiary won a £34m contract to supply new equipment and services to the Venezuelan national broadcaster, VTV.

Oil and gas minnow Petrel Resources gushed 5 3/4p to 21p after becoming the first Aim company to be traded on the German OTC market. Institutional presentations arranged by Merrill Lynch drummed up support.

Mobile media specialist Incite Holdings rose 5p to 65p on talk of an imminent joint venture deal.

Reflecting the confident tenor of chairman Peter Jacob's agm statement, LA Fitness skipped 1 1/2p higher to 146p. Trading is in line and plans are afoot to open four fitness clubs during the next 12 months.

After its newly-formed educational consultancy division announced the signing of several contracts worth £250,000, Europasia Education edged up 1/4p to 1.70p.

Akers Biosciences shed 4p at 50p after raising £590,000 in a placing of 1.36m shares at 45p.

LOSS-MAKING insurance software group Innovation firmed 1 3/4p to 19 3/4p. ICE SAS, a French company owned by entrepreneur Robert Bonnier, has acquired a further 8m shares and now owns 26m, or 6.2%. It could be a good recovery or takeover play. Innovation this week reported reduced pretax losses of £24m, down from £391m. Chief executive Hassan Sadiq is cautiously optimistic about the outlook for next year.