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Daily Mail, London, market report column [Daily Mail, London](Daily Mail (London, England) Via Acquire Media NewsEdge) Aug. 31--Punted more times than a rugby ball at Twickenham, professional punters are adamant that a successful takeover bid or merger involving artificial hips and knees group Smith & Nephew is just around the corner. The shares attracted revived speculative support and closed 22.5p better at 596.25p amid hot gossip of an imminent UKpound8bn-plus or UKpound9 a share cash offer from Biomet, one of the world's leading medical device manufacturers located in Warsaw, Indiana. In 2006, Smith & Nephew almost struck a deal with Biomet. However, it was outbid by a group of private equity owners, who bid UKpound6.8bn for the company. Biomet's private equity owners including Blackstone, Kohlberg Kravis Roberts and TPG Capital are now apparently ready to turn the tables on S&N having seen its share price take a tonking. Earlier this year it was reported that S&N had rejected a 750p a share cash low-ball offer from US giant Johnson & Johnson. J&J walked away and immediately swallowed Swiss group Synthes, a market leader in trauma products, for UKpound13bn. But word is J&J has still not given up on acquiring S&N one day and has enough corporate fire power to pounce should it want to, particularly if Biomet shows its hand. Deutsche Bank has a target price of 775p for S&N. Rival broker Matrix believes it's worth 893p, while Investec remains bullish and reckons the shares should be a safe haven in turbulent markets. Playing catch up after European and US markets had risen sharply over the bank holiday, the Footsie raced away to close 138.74 points better at 5,268.66, while the FTSE 250 ended 246.05 points higher at 10,243.15. News of the friendly Qatari-backed Greek banks merger between Alpha and Eurobank was considered to be a step in the right direction following the country's debt problems, while a bullish Deutsche Bank circular on the beleaguered UK banks sector also gave the market a timely lift. Wall Street ended 20.7 points higher at 11,560. Deutsche advised clients that the 'sector valuation will prove attractive' and singled out Barclays, 10.4p up at 165.35p, as its top pick. Part-nationalised Royal Bank of Scotland rose 1.76p to 23.645p, while Lloyds Banking Group, additionally boosted by director Truett Tate's purchase of 175,746 shares at 28.45p a pop, added 2.315p at 32.0275p. Platinum miner Lonmin jumped UKpound1 to 1275.5p on revived gossip that 24.6pc shareholder Xstrata (45.8p better at 1025.25p) is about to revive hostilities. Mick 'the miner' Davis, boss of Xstrata, does not want to get swallowed by newly floated Glencore (22.4p dearer at 399.475p), which owns 34.1pc of Xstrata, so will soon bid again for Lonmin. He was prepared to pay UKpound33 a share for Lonmin in 2008 but walked away before the financial crisis put paid to his and many other corporate deals. Superdry fashion brand group Supergroup jumped 80.5p to 963.75p on talk that a bullish tome from a leading securities house will be landing on fund managers' desks this morning. Worries about current trading dragged Marks & Spencer 0.4p easier to 309.25p and Debenhams 1.55p to a 52-week low of 52.975p. Maiden interim results from digital sports services group Perform left the shares 13.7p higher at 181.35p. Revenues were up 47pc to UKpound45.1m and earnings before interest, tax, depreciation and amortisation rose to UKpound6.12m from UKpound5.28m last time. There is no dividend. Bwin Party Digital Entertainment advanced 7.4p to 109.75p on hopes that today's interim figures hit the jackpot. Despite chairman Ed Bramson's buying spree in recent weeks, F&C Asset Management remained friendless at 65.701p, down 1.95p. Stockbroker Daniel Stewart firmed 0.15p to 1.525p after returning tp profitability last year. It reported pre-tax profits of UKpound1m, compared with a loss of UKpound2.8m, on revenues 236pc higher at UKpound8.5m. It has UKpound2.4m cash in the bank. Petroceltic edged up 0.23p to 4.755p following a positive operational update on its Algerian interests. Northern Ireland-based broadcaster and TalkSPORT owner UTV Media advanced 12.75p to 120.75p after reporting a 15pc rise in first-half pre-tax profits to UKpound10.9m, with TV advertising revenue up 4pc. Peel Hunt has a target price of 187p and says the company is performing in line with the ITV Network in its TV activities, but ahead of the radio sector in the UK. ___ (c)2011 the Daily Mail (London, ) Visit the Daily Mail (London, ) at www.dailymail.co.uk/home/index.html Distributed by MCT Information Services |