Market Report: Television takeover fever boosts Yorkshire shares

SHARES in Yorkshire-Tyne Tees Television stretched to their highest for three years as speculation intensified that its screens will be the subject of the next showbusiness takeover drama.

The price at one time nudged 320p. It closed at 310p, up 12p. At the start of the year the shares were 150p.

The loss-making contractor, which had talks with LWT (Holdings), is regarded by many as the 'last chance saloon' TV group.

The battle for LWT merely underlines Yorkshire's fading chances of retaining its independence.

If Granada's hostile offer wins, the 13.95 per cent interest LWT holds in Yorkshire will be available to any would-be predator. And should LWT survive, it is unlikely to remain a passive shareholder in Yorkshire. It will either bid for the company - or sell on its interest.

The hovering presence of Pearson, the banking and publishing group that owns Thames TV, adds to Yorkshire's vulnerability. Pearson is thought to be keen to become a leading player in the TV world. It too owns 13.95 per cent of Yorkshire and would be in a strong position if it snapped up the LWT stake.

The media and TV excitement, a powerful stock market influence this year, shows little sign of abating. And even when shares are in a flat, uninspiring mood, as they were yesterday, the two sectors more than hold their own.

Reuters was the star performer, encouraged by bullish comments following its results and share split. The shares rose 47p to 2,018p. Pearson shaded 1p to 712p.

Granada, helped by an upbeat trading statement, rose 10p to 578p; LWT was little changed at 738p. The rest of the stock market was on a roller-coaster, with bond prices exerting a considerable influence.

Shares started lower, rallied, fell back and then staged a recovery. The gyrations did not, however, take them into positive territory. The FT-SE 100 index closed 11.1 points down at 3,429.1. At one time it was off 36.5. The supporting FT-SE 250 index fell 30.5 to 4,101.1.

Westland rose 23p to 330p as it rejected the GKN bid and the market took the view the aggressor would have to increase its terms to capture the helicopter group. GKN dipped 16p to 566p.

Brewers were ruffled by the High Court judgment that appeared to be a significant victory for Inntrepreneur publicans. Grand Metropolitan, which runs the Inntrepreneur scheme with the Australian-owned Courage brewing group, fell 8p to 461p. Bass, down 7p at 548p, had to contend with switch advice from Societe Generale Strauss Turnbull.

Owners Abroad flew 20p higher to 120p on recovery prospects; Savoy Hotel edged ahead 24p to 1,052p on the suspicion Forte's failure to win the Italian Ciga hotel chain will reinforce its ambition to pump its upmarket hotels into the group.

The day's newcomers had interesting experiences. The eagerly awaited Kleinwort European Privatisation Investment Trust achieved a premium of sorts. The ordinary shares, sold at 50p, ended at 43.5p. But the free warrants closed at 43p. So the package traded at 52.1p.

Coda, a computer systems group, had a more traditional success, touching 265p from a 235p placing price. Utility Cable, the reshaped Baillie Gifford Technology Trust, returned at 32p against a 31p suspension.

The power generators were tormented by rumours that the threatened Monopolies and Mergers Commission inquiry was about to be announced. National Power fell 2p to 473p and PowerGen 9p to 542p.

George Wimpey, the builder, lost 11p to 230p as it became known that Goldman Sachs had removed the shares from its leading European buy list.

Arjo Wiggins Appleton, the packaging group, put on 12p to 296p as a rival operation lifted its pulp prices. Lakeland packaging group James Cropper improved 13p to 417p following an agency cross of 285,000 shares at 415p.

Oils shrugged off soft crude prices with British Petroleum still attracting bullish comments ahead of today's results. The shares rose 5.5p to 390.5p.

Burdene Investments advanced 3p to 54p on talk that it intends to concentrate on its caravan operations, but Rodime, a play on successful US litigation, fell 3p to 43p as Peter Bailey, managing director, sold 1.5 million shares for 'personal liquidity reasons'. Director buying lifted AIM, a maker of aircraft interiors, 20p to 175p.

Tex, the engineering specialist that issued a profits warning after the market closed on Tuesday, was at one time down 11p. The shares closed at 42p, off 5p.

Waverley Mining added 3p to 67p as its Monktonhall Colliery deal was approved by the miners of the Scottish pit.

Essex Furniture added 4p to 253p on the arrival of new brokers, Granville Davies.

Chiroscience, the biotechnology new issue that has run into flak, should enjoy a successful debut tomorrow, UBS believes. Analysts Andrew Porter and Andrew Richmond are looking for a 15 per cent premium and say investors should look to buy. There has been talk that the 150p sale price was too high, and the 30 million share placing was given a mixed reception.

Signet, ex-Ratners, edged forward 1p to 36.5p. Robert Fleming Securities believes the shares will 'slowly but surely get back to 100p'. In a recent circular on the once high-flying jewellery group, analysts Ray Bowden and Ashley Thomas predict a loss of pounds 5m in the year just ended and profits of pounds 30m this year, allowing this year's preference dividend to be paid.

The FT-SE 100 index fell 11.1 points to 3,429.1 and the FT-SE 250 index 30.5 to 4,101.1. Turnover totalled 912 million shares from 35,951 deals. The account ends tomorrow with settlement on 21 February. Government stocks gave ground.

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