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London Evening Standard, market report column [London Evening Standard](Evening Standard (London, England) Via Acquire Media NewsEdge) May 21--SHARES in Capita reached an all-time high today as the outsourcing group closed in on a lucrative 10-year deal with O2, worth an estimated pounds sterling 1.2 billion. The company said it was in "final negotiations" to provide customer services for the telecoms group in a move that sent its shares soaring more than 8 percent to 1025p, before settling at 1011p. "Capita is now clearly going to deliver strong organic growth through 2013," Espirito Santo's analysts said. The company confirmed it had now won contracts worth about pounds sterling 2 billion so far this year. The news helped London's FTSE 100 build on last night's highest close since September 2000, edging up a further 2.82 points to 6758.40. Further down the scale, the odds seemed stacked against bwin.party today after a 17 percent fall in first-quarter revenues. The FTSE 250 gambling group, which is best known for sponsoring Cristiano Ronaldo's Real Madrid, missed the jackpot with a lukewarm trading update that failed to inspire investors. The company blamed revenues of pounds sterling 180.2 million on a shift in strategy -- from "volume to value," as one analyst put it -- which sent its shares down 5.2 percent to 136p. Analysts were a little more upbeat and Panmure Gordon reiterated a Buy on the stock, citing expected cost savings of euro 70 million (pounds sterling 59.4 million) this year. "The expected decline in the top-line has been offset by cost savings," the broker said. "Regulatory risk has subsided in Germany and the group is well positioned to capitalise on the shifting US regulatory landscape." Britain's oldest private equity group 3i rose almost 1 percent to 359p after completing its latest disposal. The company, which is being overhauled by (new-ish) boss Simon Borrows, said it had agreed to sell Xellia Pharmaceuticals to Danish healthcare group Novo. The sale will net the group about pounds sterling 143 million. Analysts at Investec raised their target price on the company from 278p to 347p, but maintained a Hold rating. "3i Group reported full-year 2013 results last week and provided the market with an update on the strong progress of the restructuring programme," they said in a note. "Though there should be further net asset value growth to come, we currently see greater value elsewhere in the listed private equity sector, such as SVG Capital and Electra Private Equity." Elsewhere, Legal & General was out and about splashing the cash, increasing its stake above 3 percent in a host of companies including Bunzl, Debenhams, Greggs and Marks & Spencer. Quixant, a gaming and slot machine specialist, joined London's junior AIM market. The company's shares opened up 2.5p at 48.5p. ___ (c)2013 London Evening Standard Visit the London Evening Standard at www.standard.co.uk Distributed by MCT Information Services |