Speculation that a Tony O'Reilly consortium might intervene in the bidding for Eircom fired interest in the telecoms stock, but yesterday's modest volumes in the stock suggest that most shareholders are going to sit tight until they see what emerges. At this stage, the market is sceptical about Dr O'Reilly becoming involved in the break-up. The shares closed seven cents higher on €3.30 after peaking at €3.33.
Elsewhere, the two big banks enjoyed contrasting fortunes in sizeable dealing, with AIB up 20 cents to €12.93 in volume of more than three million shares while Bank of Ireland dropped 16 cents to €9.06 with 2.5 million shares trading. Irish Life - the sole bidder for TSB - was 10 cents easier on €12.15.
Big acquisitions by CRH are now so common that the market barely blinked at the news of the group's €425 million cement acquisition in Switzerland. The stock was five cents easier on €18. Golden Vale relisted its shares after pulling out of its reverse takeover of Prize Foods and lost five cents to €1.00. The market was generally happy that Golden Vale has been cautious about spending a lot of money, with some analysts taking the view that the British consumer foods industry is an increasingly difficult sector.
Greencore was unchanged on €2.80 as it reportedly lost out in the bidding for Hazlewood. Greencore might now refocus its attentions on Perkins Foods, the British group that it bid for but later withdrew earlier this year.
The three per cent fall in the opening session on Nasdaq hit Irish technology shares hard. Baltimore - despite robust third-quarter results - fell 38 1/2p to 485p (€844) sterling in London.
