Yesterday’s trading: M&B a racing cert for tycoons

By Geoff Foster for MailOnline
Updated: 02:43 EDT, 8 May 2008

Share stakes in Mitchells & Butlers have changed hands more times than a pack of Paul Daniels' playing cards. So much so that investors, who are understood to be acting separately, account for about 40% of the All Bar One and O'Neills pub chain's equity.

Geoff Foster, Daily Mail

Yesterday, rumours were rife that Irish racing tycoons John Magnier and JP McManus had increased their stake to around 10% from 7% after a tranche of 12m shares went through on the ticker at 337p. The transaction excited punters and left the close 15¼p better at 340&frac;34p on hefty turnover of 32m.

Other shareholders Robert Tchenguiz, who owns about 23.5%, hedge funds Marshall Wace and Centaurus Capital and entrepreneur Trevor Hemmings are said to be looking to oust M&B's chief executive Tim Clarke unless he agrees to unlock billions of pounds from its property portfolio.

They have become deeply frustrated by the management's inability to monetise it and hope to hear something positive when M&B presents its strategic review on May 20.

Enterprise Inns'late spurt of 115¼p to 510p after saying it was eligible to convert to real estate investment trust (REIT) status if an internal restructuring of the group was undertaken, intoxicated investors in the bombed-out pubs sector.

They raised their glasses to Marston's, 34½p better at 234p, Punch Taverns, 60½p dearer at 600p, and Greene King 55½p higher at 590½p.

Ignoring an early 55-point drop on Wall Street following worse-than-expected pending US home sales, the Footsie climbed 45.8 points higher to 6,261 ahead of today's Bank of England decision on UK interest rates.

The first signs of summer weather in the UK saw bears scurrying to close their short positions in fashion retailer Next ahead of today's interim management statement.

Down more than 50% from the year's high, the shares recovered 50p to 1228p on hopes that chief executive Simon Wolfson will have something encouraging to say about high street trading at a time when Joe Public is struggling with much higher mortgage, petrol and domestic energy bills.

Analysts are expecting the worst and broker Kaupthing reckons anything better than a 7% decline in retail sales would be very well received, while anything worse than minus 10% could result in further downgrades.

But Next's core customers are amongst the worst affected by the credit crunch and there is considerable risk to third-quarter sales assumptions of a 3.3% decline in like-for-like sales. The broker does not see much good news this side of Christmas and sees fair value at £11 a share.

Carphone Warehouse buzzed 18¾p higher to 299¼p as speculation intensified that a breakup of the company could be imminent. The story remains that boss Charles Dunstone will soon acquire broadband firm Tiscali, having sealed a deal to sell part of his high street shops to Best Buy of the US.

Tin can maker Rexam lost 15¾p to 464p on revived gossip that a rights issue could be on the agenda. The group has a market capitalisation of £2.9bn and net debt of £1.9bn.

Motor dealer Pendragon accelerated 1½p to 41¾p on whispers that property entrepreneur Jack Petchey was adding to his shareholding.

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