C&C cheers market with statement on €205m deal

DUBLIN: Iseq:3,066.80 (+49.76) Settlement date:September 1st

DRINKS GROUP C&Cwas the star performer on a day that saw the Iseq index of Irish shares outperform their European peers and close up 49.76 points or 1.65 per cent at 3,066.80.

The Bulmers cider manufacturer announced a €205 million deal with Anheuser Bush Inbev, that will see it take over the world’s biggest brewer’s Irish and Scottish businesses, giving it a portfolio including Scotland’s biggest selling lager Tennant’s.

Investors responded by buying 16 million of its shares, sending its price up by 15.7 per cent to close at €2.58, from an opening show of €2.23.

Aer Lingusannounced a significant half-year loss, but the shares initially went up before falling to close off 0.6 per cent at 50.3 cent. Low-budget rival Ryanairalso one of Aer Lingus's biggest shareholders, travelled in the opposite direction, closing up 2.12 per cent at €3.137.

CRH, which accounts for about one-third of the index, added 0.49 per cent to close at €17.948. The building materials giant is tipped to be included in the Euro Stoxx index when it reviews its component stocks next week. Inclusion in this means that fund managers who track this benchmark will have to buy the stock. Dublin dealers say that their purchases will equal about 13 days volume of normal trade.

Among the financials, Bank of Ireland and AIB gained ground, with dealers saying that there were good volumes in both stocks.

One trader said that the market was beginning to notice that institutional investors are taking an interest in both banks, presumably betting that Nama will work. AIBclosed up 6.49 per cent at €2.51 while Bank of Irelandgained 7.6 per cent to close at €2.549. In a related sector, financial adviser and investor IFG, added 8.6 per cent to close at €1.45 after producing good interim results.