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Daily Mail, London, market report column [Daily Mail, London :: ](Daily Mail (London, England) Via Acquire Media NewsEdge) Aug. 22--AS shares of AstraZeneca jumped 3pc or 126.5p to 4411.5p on growing expectations that Pfizer will launch a knockout cash offer north of pounds sterling 69bn after the Takeover Panel removes its handcuffs on Tuesday, the buzz in dealing rooms was that an even bigger takeover deal will soon set the market alight and launch the fabulous Footsie to a record above the magic 7,000 in the final quarter. Vodafone put on 1.45p to 202.6p amid red hot speculation that advisers of AT&T are now working around the clock on a cash bid worth more than pounds sterling 3 a share for the UK mobile phone giant, which is currently capitalised at around pounds sterling 53bn. After intense speculation in January, the second largest US mobile operator was forced to say that it didn't plan to make a bid for Vodafone. That meant it could not offer to buy Vodafone or a stake of 30pc or more in the company for six months. AT&T has been allowed to make a move since late July and the weak performance of the Vodafone share price has persuaded the board to set the wheels in motion. AT&T has been looking in Europe for growth as its home market becomes more competitive. An acquisition of Vodafone would mean AT&T taking over Europe's biggest wireless carrier and creating the world's largest telecommunications operator by sales. With more than 500m wireless subscribers worldwide, the combined company would be able to challenge Google and Apple when negotiating handset subsidies and wringing profit out of growing technologies such as mobile advertising. It would give AT&T access to markets including the UK and Germany, with Vodafone continuing to add wireless and broadband assets in Europe. But Vodafone has another heavyweight admirer. China Mobile, one of the world's largest mobile phone firms, was sniffing around earlier in the year with speculation then rife that it was interested in acquiring a stake in Vodafone up to 20pc. The idea being to set up a joint venture to target the booming African market as the UK company has a strong presence there. Back in January it would have had to pay close to pounds sterling 3 a share, but now a bid of around 220p a share would probably see it trouser a strategic stake. Should AT&T launch a full bid, the state-backed Chinese group could definitely have something to say about it. Vodafone has been seen as a takeover target ever since chief executive Vittorio Colao agreed to sell the company's 45pc stake in Verizon Wireless to Verizon for pounds sterling 70bn in September 2013. The juicy prospect of mergers and acquisition activity in the short to medium-term helped the Footsie rally 22.18 points to 6,777.66. Sentiment in London was boosted by the S&P's move to a record high in early trading after initial US jobless claims fell to a seasonally adjusted 298,000 last week, a decline of 14,000 from the prior week, and slightly below the 300,000 consensus. Additionally, existing US home sales in July increased 2.4pc to an annual rate of 5.15m units, the fastest pace in almost a year. Replacement hip and knee group Smith & Nephew added 17p at 1064p on prevailing bid hopes. US rival Stryker, at the request of the Takeover Panel, said in May that it did not intend to make an offer for the company. Dealers believe it will return in November when the six month veto is over. HgCapital Trust, the all-share listed arm of European buy-out firm HgCapital, soared 46p to 1061p following strong interims. The net asset value at the end of June was 1218p per share, up 5.8pc after allowing for the 29p per share dividend paid. Discount airline Ryanair dipped euro 0.02 to euro 6.80 amid speculation that boss Michael O'Leary is on the verge of acquiring Cyprus Airways. The airline, which is controlled by the Cypriot government, has been running at a loss for years and was recently forced to offset assets, including its slots at Heathrow airport, in order to remain in the air. Tangent Communications, a provider of online printing and digital marketing, lost 1.75p or 19pc to 7.5p after warning profits for the six months to end-August will fall short of expectations. Profits will be hit by an anticipated 20pc decline in sales in its agency division, where underlying profits are expected to be pounds sterling 450,000 lower than in 2013. On a brighter note, Office2Office jumped 20.62p or 75pc to 48.25p in response to an agreed 51p a share cash offer from Evo Business Supplies, a newly incorporated company owned by the Endless 111 Funds. Highly speculative Rare Earth Minerals cheapened 0.06p to 1.56p after announcing an update on its Lithium joint venture in Mexico. After exercising its rights, it now has a 30pc direct interest in the Fleur El-Sauz and Megalit concessions in JV with Bacanora Minerals, 0.07p easier at 1.31p. ___ (c)2014 Daily Mail (London, ) Visit the Daily Mail (London, ) at www.dailymail.co.uk/home/index.html Distributed by MCT Information Services |