City Watch

This week started well on the stock exchange with a flow of mostly positive corporate news keeping the FTSE 100 index rising on Tuesday it was up 13.9 points at 5894.8. Merger speculation kept engineering shares among the risers. LucasVarity rejected a £3.9bn offer from the US-based Federal Mogul on Monday, only to admit on […]

This week started well on the stock exchange with a flow of mostly positive corporate news keeping the FTSE 100 index rising on Tuesday it was up 13.9 points at 5894.8.

Merger speculation kept engineering shares among the risers. LucasVarity rejected a £3.9bn offer from the US-based Federal Mogul on Monday, only to admit on Tuesday morning that it was in talks with another US group for a reported £4bn deal. LucasVarity shares soared 44p to 288p up 17%.

Braking and steering systems company Adwest announced a £124.8m takeover by US group Dura. The deal valued Adwest at 150p a share and the stock jumped 13.5p to 147.5p.

Medium-sized engineers also benefited from revived speculative interest Senior Engineering rose 6p to 104p, Cookson climbed 7p to 130p and IMI was up 9p at 204p.

FKI was up 5p at 142p after executive chairman Jeff Whalley said he would be retiring at this year’s AGM and moving to a non-executive role.

Morgan Crucible was up 9p at 173p ahead of an analyst’s visit. The trip follows the company’s recent profit warning.

Elsewhere, British Aerospace was unchanged at 428.5p after denying claims that it was set to offload its 5% stake in telecoms company Orange.

Stock market tiddler UCM rose 5p to 85p after unveiling details of a $1m investment to improve its US zirconia production facilities.