FTSE in-depth: Bid rumour lifts Quintain Estates

By Geoff Foster for MailOnline
Updated: 03:29 EDT, 2 March 2011

Share stakes in UK property group Quintain Estates have changed hands more times over the years than a pack of Paul Daniels' playing cards.

Yesteday's FTSE trading in depth by Geoff Foster

Veteran property investor Jack Petchey and colourful former Tottenham Hotspur director Paul Kemsley are among the many speculators who have been in and out of the stock like a fiddler's elbow on hopes that one day a bidder would pounce.

Alas, Quintain remains independent, but property sources suggest corporate activity could now be just around the corner.

Punters started to nibble yesterday and the shares added 1.25p at 44.50p on an early jackanory that a private equity player had bid major shareholder Caledonia Investments at least 80p a share for its 10.6% stake, prior to launching a full-scale cash offer for the company.

Another tale doing the rounds suggested that activist hedge fund Laxey Partners, which created a stir late last year when it acquired a 5.76% stake Quintain, is about to ruffle a few feathers by calling for change at the top and some action in the boardroom to enhance shareholder value.

Laxey has a long record of forcing change in British boardrooms and is currently agitating for a share buy-back at underperforming global investment trust Alliance (1.9p cheaper at 357p).

It is trying to persuade boss Katherine Garrett-Cox to introduce an automatic share buy-back when its price is less than 90% of the value of its underlying investment.

Quintain must look attractive to any cash-rich predator. Currently valued at only £230m, it is in the process of constructing Wembley City, an area which includes a Hilton Hotel and a 600-bedroom student accommodation scheme. It also has plans to create a new 700-space car park adjacent to the London Designer Outlet which it plans to open in 2012.

Earlier this month Quintain also said progress was being made towards creating a new income-generating fund and is on target to meet a £1.25bn funds under management goal.

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