C&C benefits from bid for British rival

Dublin report:The Iseq index of Irish shares recovered from its negative performance on Monday and Tuesday to close up more than 1 per cent yesterday.

Selling pressure on Anglo Irish Bank lifted, helping its share price to climb 2.25 per cent, a rise of 28 cent on the previous day's closing price. CRH also recovered part of the ground it has lost due to negative housebuilding sentiment in the US, adding three cent to close at €26.89.

But the story of the day was C&C, which rose almost 3 per cent as a result of news of a hostile bid by Carlsberg and Heineken for its competitor in the British cider market, Scottish & Newcastle. C&C added 15 cent to close at €5.38.

Dealers commented that if Heineken took over the running of Scottish & Newcastle's UK brands, it would invest more heavily in marketing premium cider to British drinkers and would consequently help grow the category - to the benefit of C&C's Magners cider brand.

The averting of the pilots' strike at Aer Lingus continued to help the stock catch up with the recent upward movements made by easyJet and Ryanair. The airline's share price rose four cent to €2.39, a climb of 1.7 per cent.

Ryanair had a better day, though, rising almost 2.9 per cent to €5.72.

Also putting on a convincing performance was food group Iaws, which added 30 cent to close at €15.75, as management addressed investor roadshows on its ability to pass on input cost increases in the form of price increases on its products.

Paddy Power rose more than 3 per cent, with the 85 cent climb resulting in a closing price of €26.70 for the betting firm.

Although trading volumes were still relatively subdued, there was no major sell-off.