Trio of big float candidates poised

WITH Yell and Benfield on the field of play and the successful big demergers of Six Continents and Kingfisher, the City is busy looking to see what else might emerge from the flotations locker room this year.

High on the list are the big three flotations pulled 12 months ago, the summer of discontent which derailed Yell's first attempts to get its initial public offering away.

While Burberry, Punch, William Hill and HMV all bit the bullet with flotations in the summer of 2002, left on the sidelines unwilling to play were foods group RHM, owned by venture capitalist Doughty Hanson, DIY combine Focus Wickes, put together by another private equity house Duke Street Capital, and the Irish food and drink group Cantrell & Cochrane.

The City rarely countenances a large flotation in August, so all eyes are now on whether the revived London market will attract big new entrants through the autumn.

First up is likely to be Northumbrian Water, set to move up to the main market from its halfway house on the Alternative Investment Market after a group of investment banks bought the group from French utilities giant Suez in May.

Others long-awaited on the new issues schedule likely to come in at around £1bn or more include Tussauds Group, owned by venture capitalist Charterhouse, insurer Wellington Re and support services group Xchanging. Market watchers will also be looking for a change of heart at Cazenove, one of few large, privately owned City institutions.